A company has a higher current ratio than the industry average.This implies that the company:

Question

Quizplus · Accepted Answer

A higher current ratio indicates that the company has more current assets relative to its current liabilities, which means it is more capable of meeting its short-term obligations and less likely to face insolvency. This does not necessarily imply higher profitability or lower inventory levels, nor does it have any direct relation with the P/E ratio compared to other companies in the industry.

A Company Has a Higher Current Ratio Than the Industry