A current ratio of 2.4:1 means that a small company has $2.40 in current liabilities for every $1 has in current assets.

Name: A current ratio of 2.4:1 means that a small company has $2.40 in current liabilities for every $1 has in current assets.
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A current ratio of 2.4:1 means that a small company has $2.40 in current assets for every $1 it has in current liabilities. The ratio is expressed as current assets divided by current liabilities, not the other way around.

A Current Ratio of 2