A high current ratio means that a company is highly profitable.

Name: A high current ratio means that a company is highly profitable.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A high current ratio indicates that a company has a high level of current assets relative to its current liabilities. While this may suggest that the company is able to cover its short-term obligations, it does not necessarily indicate profitability. Profitability is better measured by metrics such as net income or return on investment.

A High Current Ratio Means That a Company Is Highly