A current ratio of 1.2 to 1 indicates that a company's current assets exceed its current liabilities.

Name: A current ratio of 1.2 to 1 indicates that a company's current assets exceed its current liabilities.
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A current ratio of 1.2 to 1 means that for every $1 of current liabilities, the company has $1.2 of current assets available to pay off those liabilities. Therefore, the company has more current assets than current liabilities, indicating a healthy liquidity position.

A Current Ratio of 1