Prepare a coursework give an example of how a current ratio could be misleading and what you would do to avoid being misled.

Discussion: Ratio

The current ratio, as a measure of a company’s ability to pay its short-term debt, provides valuable information, but it is open to misinterpretation.

Give an example of how a current ratio could be misleading and what you would do to avoid being misled.

Prepare a coursework give an example of how a current ratio could be misleading and what you would do to avoid being misled.
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