Loan Essay Examples

loan, although WannaBees also has good results. This is because the ratio is a measure of a company's capacity to meet its financial obligations. Both companies have current ratio figures greater than 1 to indicate that their assets are greater than the liabilities. Given that Potz and Pans has the highest ratio, it can be inferred that this is an indication that the company is financially well off. Still, the figures must be approached with caution since the high figures can also be an indication that the company is not making the best use of its working capital, has not secured financing and is not making efficient use of its current assets. In this respect, the current ratio results show that Potz...