A key liquidity ratio here and don't forget the result is expressed as a ratio, not a percentage!

Be wary of saying that a current ratio number is good or bad - it depends on the industry and business.

For example, in the last 12 months Tesco's highest current ratio was 0.82, the lowest was 0.35, and the median was 0.59. Tesco can operate with low current ratios because is generates lots of cash and suppliers provide lots of trade credit!

Similarly, a high current ratio might indicate that a business has too many assets, such as excess inventories.

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