A rule of thumb in financial analysis is that a current ratio of 2 is adequate. a.
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A rule of thumb in financial analysis is that a current ratio of 2 is adequate.
a. If this is so, how much could a firm’s current assets shrink and still be sufficient to satisfy current obligations?
b. Explain how a current ratio of 2 may be inadequate to meet current obligations.
c. Explain how a current ratio of 2 may be more than sufficient to meet current obligations.
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Related Book For 
Financial Management And Analysis (Frank J. Fabozzi Series)
ISBN: 9780471477617
2nd Edition
Authors: Frank J. Fabozzi, Pamela P. Peterson
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