- This topic has 3 replies, 3 voices, and was last updated 11 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>
Forums › OBU Forums › Strength
Is Current ratio improving a strength ?
Not sure what you mean by that. Do you mean is having a healthy/high liquidity ratio a strength of an organisation?
Yes ?
No, it is not a strength. having a very high current ratio is actually a weakness because it shows that too much capital is tied up in working capital of the company.
you can say something like this ” the company is able to constantly improve its current ratio over the years which shows that it has good working capital management expertise”.
In this way strength will be working capital management expertise. but do take into account the norm current ratio of the industry.