Is 1.35 a Good Current Ratio? Understanding the Significance and Implications

The current ratio, a fundamental metric in financial analysis, measures a company’s ability to pay its short-term debts using its short-term assets. It is calculated by dividing the company’s current assets by its current liabilities. A current ratio of 1.35 indicates that for every dollar of current liabilities, the company has $1.35 in current assets. … Read more