The ratio between current assets and current liabilities, which reflects the liquidity of the business in order to pay short term debt.If this ratio is less than 1, it means that there are parties current liabilities rather than assets turnover.Cause there may be a problem in the short term debt settlement. If the ratio is greater than 1 indicates that the gross turnover assets.Enough to pay the debt but short-term value higher than 1 may mean efficiency in the use of the asset.Of the business is not good enough.
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