The current ratio shows how easily a company can pay its current obligations.

Name: The current ratio shows how easily a company can pay its current obligations.
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The current ratio is a financial ratio that measures a company's ability to pay its current liabilities with its current assets. A high current ratio indicates that a company can easily meet its current obligations, while a low current ratio indicates that a company may have difficulty meeting its short-term financial obligations.

The Current Ratio Shows How Easily a Company Can Pay