A very low cash ratio does not send a strong message to investors and creditors that the company has the ability to repay its short-term debt.

Name: A very low cash ratio does not send a strong message to investors and creditors that the company has the ability to repay its short-term debt.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

A low cash ratio indicates that the company may not have enough liquid assets to pay off its short-term debts, which can be seen as a risk to investors and creditors.

A Very Low Cash Ratio Does Not Send a Strong