Question: Access Motley Fool's discussion of the current ratio at Fool.com/School/Valuation/ CurrentAndQuickRatio.htm. (If the page changed, search that site for the current ratio.)
Required: 1. What level for the current ratio is generally regarded as sufficient to meet near-term operating needs?
2. Once you have calculated the current ratio for a company, what should you compare it against?
3. What are the implications for a company that has a current ratio that is too high?