Current Ratio 0,75 times means that East Cost Yachts (ECY) has its current liabilities covered0,75 times or it has $0,75 in current assets for every $1 in current liabilities. This situation is notgood for East Cost Yachts because current assets cannot be used to repay the current liabilitieswhen these liabilities are due.It is negative compared to the Yacht Industry average which the current ratio is 1,43 (higher
than ECY’s current ratio) means that ECY has relatively lower liquidity positions than the average
of its competitors.
If it needs quick cash to fulfill the liabilities’ payment, the company will be in
trouble.