Week Nine Final Project Analyzing Financial Statements

HSM 260

Current Ratio

Table [ 1 ]

2002 2003 2004

Current Ratio Current Assets 104, 82, 302,

Current Liabilities 139, 93, 699,

An organization's current ratio shows how liquid the assets of the agency are by comparison to the short term debts that the agency must pay to continue its operations. This ratio is calculated by taking the assets that can be converted to cash within a year (current assets) and dividing it by the liabilities that are either currently due or will become due within a year (current liabilities). The current ratio, ideally, should be at 1.0 because, that would mean that the agency is fully able to cover its...