Ratios of 1 or higher indicate short-term solvency. Because the current ratio compares short-term assets directly to short-term liabilities, a ratio of 1 or more indicates that a company would be ...
However, because the current ratio at any one time is just a snapshot, it is usually not a complete representation of a company’s short-term liquidity or longer-term solvency. For example ...
The consolidated solvency ratio of the insurance sector remains above the minimum threshold limit of 150 per cent, according to the latest Financial Stability Report (FSR). As insurance ...