If a current ratio is above 3 If a company calculates its current ratio at or above 3, this means that the company might not be utilizing its assets correctly.
In this situation, the outcome of a current ratio measurement is misleading.
Posisi likuiditas entitas mungkin secara implisit terlihat sehat jika rasio lancar lebih tinggi dari satu dan tidak sehat jika rasionya kurang dari satu.
Transformation Ratio More often, the ratio of the secondary voltage to the primary voltage is termed as transformation ratio and denoted by the letter K.
This is because a high current ratio represents two things: either an excess of cash or its equivalent relative to the current needs or a preponderance of current assets having low liquidity.
Other ratios that companies use to determine their financial standings include the quick ratio and the operating cash flow ratio.