 # BookRiff

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## What is a good range for liquidity ratio?

between 1.2 to 2
A good current ratio is between 1.2 to 2, which means that the business has 2 times more current assets than liabilities to covers its debts. A current ratio below 1 means that the company doesn’t have enough liquid assets to cover its short-term liabilities.

How do you find the liquidity ratio?

Current Ratio = Current Assets / Current Liabilities They are commonly used to measure the liquidity of a and current liabilities line items on a company’s balance sheet. Divide current assets by current liabilities, and you will arrive at the current ratio.

Is a 1.8 current ratio good?

A current ratio below 1-to-1 indicates a business may not be able to cover its current liabilities with current assets. A current ratio above 2-to-1 may indicate a company is not making efficient use of its short-term assets. In general, a current ratio between 1.2-to-1 and 2-to-1 is considered healthy.

### What is General Motors current ratio?

General Motors Co has a current ratio of 1.10.

Is 1.01 a good current ratio?

If Current Assets > Current Liabilities, then Ratio is greater than 1.0 -> a desirable situation to be in. If Current Assets = Current Liabilities, then Ratio is equal to 1.0 -> Current Assets are just enough to pay down the short term obligations.

How do you calculate a company’s liquidity?

The current ratio (also known as working capital ratio) measures the liquidity of a company and is calculated by dividing its current assets by its current liabilities. The term current refers to short-term assets or liabilities that are consumed (assets) and paid off (liabilities) is less than one year.

## What is a bad liquidity ratio?

A low liquidity ratio means a firm may struggle to pay short-term obligations. For a healthy business, a current ratio will generally fall between 1.5 and 3. If current liabilities exceed current assets (i.e., the current ratio is below 1), then the company may have problems meeting its short-term obligations.

How do you increase liquidity ratio?

Liquidity ratios, which measure a firm’s capacity to do that, can be improved by paying off liabilities, cutting back on costs, using long-term financing, and managing receivables and payables.

What is Tesla’s quick ratio?

Tesla has a quick ratio of 1.10.

### What makes up a liquidity ratio of a company?

Common liquidity ratios include the quick ratio, current ratio, and days sales outstanding. Liquidity ratios determine a company’s ability to cover short-term obligations and cash flows, while…

How is the liquidity ratio of alphabet calculated?

A liquidity ratio calculated as current assets divided by current liabilities. Alphabet Inc.’s current ratio deteriorated from 2018 to 2019 and from 2019 to 2020. A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.

What is the current ratio of GOOG stock?

Current and historical current ratio for Alphabet (GOOG) from 2006 to 2019. Current ratio can be defined as a liquidity ratio that measures a company’s ability to pay short-term obligations. Alphabet current ratio for the three months ending September 30, 2019 was 3.78.

## What is the current ratio of General Motors?

Current and historical current ratio for General Motors (GM) from 2009 to 2021. Current ratio can be defined as a liquidity ratio that measures a company’s ability to pay short-term obligations. General Motors current ratio for the three months ending June 30, 2021 was 1.10.