A rule of thumb for a "good" current ratio is that companies should have a current ratio between _____ and _____.

Question

Quizplus · Accepted Answer

A current ratio between 1 and 2 is generally considered a good ratio, as it indicates that the company has enough current assets to cover its current liabilities without having an excess amount of current assets that may be better used elsewhere in the business. However, it's important to note that the ideal current ratio can vary by industry and by company, and it's important to consider other financial ratios and factors when evaluating a company's financial health.

A Rule of Thumb for a "Good" Current Ratio Is