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Ratios: Working Capital and the Current Ratio
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Problem 7
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Problem 10
Ratios: Working Capital and the Current Ratio
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14. Financial Statement Analysis / Ratios: Working Capital and the Current Ratio / Problem 7
Problem 7
A company has a current ratio of 0.9. What does this suggest about its liquidity?
A
The company is highly profitable.
B
The company has sufficient liquidity to cover its liabilities.
C
The company may face liquidity issues as it has fewer current assets than liabilities.
D
The company has a strong long-term financial position.
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