Joe Knight owns a website entitled business-literacy.com and he was interviewed by a writer from the Harvard Business Review. In the interview he stated that the current ratio should always be safely above one.

Here are four companies with a current ratio less than 1

Apple (0.88), Walmart (0.86), Amazon (0.94), and Marriott (0.52)

Here are four companies with a current ratio way above 1

Pinterest (13.7), Shopify (11.2), Twilio (9.6), and Beyond Meat (9.0)

I am assuming that the four firms that have a current ratio less than 1 have hired competent people to run their operations.

What are some differences between the companies that have a current ratio below 1 and the companies that have a current ratio above 1? Be specific.

Do you think that the four companies with the higher current ratio are financially healthier than the companies with the lower current ratio?