a-company-has-a-current-ratio-of-15-and-positive-working-capital-what-does-this-

Question

A company has a current ratio of 1.5 and positive working capital. What does this indicate about its ability to cover current liabilities?

Accepted Answer

The company is in a strong position to cover its liabilities.

Answer

The company has excess cash for investments.

Answer

The company has a low current ratio.

Answer

The company may struggle to cover its current liabilities and face liquidity issues.