covered 0,75 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.