The current ratio is a measure of liquidity. What information does it tell you?

Question

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The current ratio is calculated by dividing current assets by current liabilities. This ratio tells you how many times you can pay off your current liabilities using your liquid assets. It is a measure of the company's liquidity and its ability to meet its short-term obligations. A high current ratio indicates that a company is in a strong financial position and can meet its short-term obligations easily, while a low current ratio indicates that a company may have difficulty in meeting its short-term obligations.

The Current Ratio Is a Measure of Liquidity