## A high Current Ratio does not necessarily mean a company is strong. The truth is right here
Many investors have a misconception that **Current Ratio** that is high always indicates good financial health. But the reality is more complex. Today, we will break down the Current Ratio to see what it can tell us, and what drawbacks we need to be cautious of.
## What is the Current Ratio and how important is it?
**Current Ratio** (Current Ratio) is a measure that compares total current assets to total current liabilities. It indicates how capable a company is of paying its short-term debts within
View OriginalMany investors have a misconception that **Current Ratio** that is high always indicates good financial health. But the reality is more complex. Today, we will break down the Current Ratio to see what it can tell us, and what drawbacks we need to be cautious of.
## What is the Current Ratio and how important is it?
**Current Ratio** (Current Ratio) is a measure that compares total current assets to total current liabilities. It indicates how capable a company is of paying its short-term debts within