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Strength

Forums › OBU Forums › Strength

  • This topic has 3 replies, 3 voices, and was last updated 12 years ago by AvatarAnonymous.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • November 12, 2013 at 11:32 am #145610
    AvatarSalahUddin
    Member
    • Topics: 31
    • Replies: 135
    • ☆☆

    Is Current ratio improving a strength ?

    November 12, 2013 at 1:13 pm #145617
    Avatarngswr
    Member
    • Topics: 7
    • Replies: 28
    • ☆

    Not sure what you mean by that. Do you mean is having a healthy/high liquidity ratio a strength of an organisation?

    November 13, 2013 at 12:30 am #145748
    AvatarSalahUddin
    Member
    • Topics: 31
    • Replies: 135
    • ☆☆

    Yes ?

    November 14, 2013 at 2:19 pm #146004
    AvatarAnonymous
    Inactive
    • Topics: 0
    • Replies: 30
    • ☆

    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.

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