This video defines what is the Current Ratio. The current ratio is mainly used to give an idea of the company's ability to pay back its liabilities (debt and accounts payable) with its assets (cash, marketable securities, inventory, accounts receivable). As such, current ratio can be used to take a rough measurement of a company's financial health.
To read more about ratio analysis, click here - https://www.elearnmarkets.com/blog/how-to-analyse-financial-ratios/
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