Question:
why is it important to calculate the current ratio?
Answer:
✍
•✎The current ratio helps investors understand more about a company's ability to cover its short-term debt with its current assets and make apples-to-apples comparisons with its competitors and peers.
explanation:
•The current ratio compares all of a company’s current assets to its current liabilities.
•These are usually defined as assets that are cash or will be turned into cash in a year or less and liabilities that will be paid in a year or less.
