Interpretation: • Ratios of 1.0 or less are considered low and indicative of financial difficulties. • Ratios of more than 2.0 often suggest excessive liquidity that may be adverse to the firm’s profitability (i.e. funds not invested.)
Interpretation: • Ratios of 1.0 or less are considered low and indicative of financial difficulties. • Ratios of more than 2.0 often suggest excessive liquidity that may be adverse to the firm’s profitability (i.e. funds not invested.)