To avoid liquidity problems in good or bad times, the current ratio is among the best ways to measure your family’s ability to pay debt obligations within a year.
A family household can use the current ratio to know whether they can rely on having enough short-term assets readily available to pay your short-term debts.
Lenders review your numbers to judge their risk exposure. Financial advisors use your data to help you develop your goals and strategies to achieve your financial plan.