The current asset ratio is an indicator of a company's capacity to:

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The current asset ratio is a measure of a company's ability to meet short-term debt obligations, as it compares a company's current assets (cash, accounts receivable, inventory, etc.) to its current liabilities (accounts payable, short-term debt, etc.). A high ratio indicates that a company has enough current assets to cover its current liabilities, whereas a low ratio may indicate liquidity problems.

The Current Asset Ratio Is an Indicator of a Company's