For example, a company’s current ratio may appear to be good, when in fact it has fallen over time, indicating a deteriorating financial condition. But a too-high current ratio may indicate that ...

Reviewed by Charlene Rhinehart Fact checked by Suzanne Kvilhaug What Is a Liquidity Ratio? A liquidity ratio is a measurement ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

With the current ratio, current assets are used to assess ... the loan portfolio includes a high volume of non-marketable loans, or the institution's access to capital markets is impaired.