The current ratio will always be greater than or equal to the quick ratio.

Question

Quizplus · Accepted Answer

The current ratio includes all current assets (including inventory) in its calculation, while the quick ratio excludes inventory and other less liquid current assets. Since inventory is a part of current assets, removing it (as done in the quick ratio) will either decrease the ratio or leave it unchanged, making the current ratio always greater than or equal to the quick ratio.

The Current Ratio Will Always Be Greater Than or Equal