Question
A company has current assets worth ₹6,00,000 and
current liabilities worth ₹3,00,000. What is its current ratio?Solution
The Current Ratio = Current Assets / Current Liabilities = ₹6,00,000 / ₹3,00,000 = 2.0 This means the firm has twice the assets needed to cover its short-term debts — a sign of strong short-term financial health.
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