liabilities which are account payables, accrued expenses, taxes, and notes payable. The higher the current ratio, the more liquid the company is. In theory, the higher the current ratio, the better because a ratio under 1 implies that the company would be unable to meet its obligations. However, not doing well financially does not necessarily mean that the company will bankrupt. Between Coca Cola and PepsiCo, PepsiCo has a higher current ratio implying that is more capable of paying its obligations. Although…
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