The current ratio measuresa company's ability to pay short-term obligations. To gauge this ability, the current ratio considers the current total assets of a company. This graph show since 2013-2015 On the other hand, a high ratio (over 3) does not necessarily indicate that a company is in a state of financial well-being either. Depending on how the company’s assets are allocated, a high current ratio may suggest that that company is not using its current assets efficiently, is not securing financing well or is not managing its working capital well. To better assess whether or not these issues are present, a liquidity ratio more specific than the current ratio is needed.