There’s no universal safe or danger level. Ideal current ratios vary by industry. A current ratio of 1.0 means the company has $1 in current assets for every $1 in current liabilities.

Understanding the Context

A ratio below 1 ... The times interest earned (TIE) ratio is a measure of a company's ability to meet its debt obligations based on its current income. Liquidity ratios are important financial metrics that can determine whether a company can pay off its short-term debts without having to raise more capital. One of these ratios is the current ratio, ...

Key Insights

The meaning of DOES is present tense third-person singular of do; plural of doe. Definition of does verb in Oxford Advanced Learner's Dictionary. Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more.