What is Current Ratio and Why Does It Matter?

What is Current Ratio and Why Does It Matter?

Running out of cash can be a frightening experience. It is one thing when you are in a restaurant, and you leave your wallet at home. However, it can be quite stressful to realize you have a potential cash flow problem coming down the pike. To avoid liquidity problems in good or bad times, the current ratio is among the best ways to measure your family’s ability to pay debt obligations within a year. In this blog post, we will deep dive on the subject of “current ratio”.