When a current ratio is 3.2, it indicates that the health care organization has only 3% of the cash it needs to cover its liabilities.

Name: When a current ratio is 3.2, it indicates that the health care organization has only 3% of the cash it needs to cover its liabilities.
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A current ratio of 3.2 means that the organization has 3.2 times more current assets than current liabilities. It does not necessarily indicate that the organization has only 3% of the cash it needs to cover its liabilities.

When a Current Ratio Is 3