Current Ratio 1.12 times means that East Cost Yachts has its current liabilities covered 1.12 times or it has $1.12 in current assets for every $1 in current liabilities.
This situation is not good for East Cost Yachts because current assets cannot be used to repay the current liabilities when these liabilities are due.
It is negative compared to the Yacht Industry average which the current ratio is 1.51 (higher than East Cost Yachts’s current ratio) means that East Cost Yachts 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.