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What the caterpillar calls the end, the rest of the world calls a butterfly." Lao Tzu. The current ratio is a financial ratio that shows the proportion of current assets. The current ratio is used as an indicator of a company's liquidity. In other words, a large amount of current assets in relationship to a small amount of current liabilities provides some assurance that the obligations coming due will be paid. And collectible accounts receivable. Read more especially the Q and A. Current assets are asse...

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