The current ratio is another way of examining the current section of the balance sheet. In an earlier part we pointed out that if the ratio of current assets to current liabilities is too low, the company might not be able to pay its bills. However, if the current ratio is too high, the company would not be taking advantage of the opportunity to finance current assets with current l ________ s. Additional current liabilities would [increase / decrease] its ROE. Equity inevitably would be lower; otherwise, the balance sheet would not balance.