Research and Describe Current Ratio and ROE

Current Ratio and ROE
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current ratio of .50.
The current ratio is the total current assets divided by the total current liabilities, and the ratio indicates the ability of a company to pay the short term liabilities using the short term assets. A current ratio of 0.5 indicates that the current liabilities are twice as large as the current liabilities. The current ratio is unacceptable as there is a risk of the company facing difficulties meeting obligations because of liquidity problems. The working capital in this case would be negative as the current liabilities are higher than the current assets, and the company has to cover the current debt (Enqvist, Graham & Nikkinen, 2014). The likelihood that the cash flow cannot buy the inventory neces...