If a company’s ratio lingers significantly below 1 for a long time, however, this may indicate a problem with the business’ short-term solvency. The current ratio is calculated by dividing the ...

meaning the company has at least enough assets to pay off its short-term obligations. How to interpret the current ratio Some companies in specific industries may have a current ratio below 1 ...

which only looks at current earnings without considering future potential. A PEG ratio below 1.0 is typically seen as an indication of an undervalued stock, while a ratio above 1.0 could signal ...

ABC, on the other hand, may not be able to pay off its current obligations using only quick assets, as its quick ratio is well below 1, at 0.45 ... a lower ratio could mean it might have a ...