how do investors use current assets 
the total current assets figure is of prime importance to company management regarding the daily operations of a business as payments toward bills and loans become due management must have the necessary cash the dollar value represented by the total current assets figure reflects the company s cash and liquidity position it allows management to reallocate and liquidate assets if necessary to continue business operations creditors and investors keep a close eye on the current assets account to assess whether a business is capable of paying its obligations many use a variety of liquidity ratios representing a class of financial metrics used to determine a debtor s ability to pay off current debt obligations without raising additional funds financial ratios that use current assetsthe following ratios are commonly used to measure a company s liquidity position each ratio uses different current assets sub accounts compared against the value of a company s current liabilities account 12the cash ratio is the most conservative as it considers only cash and cash equivalents the current ratio is the most accommodating and includes various assets from the current assets account these multiple measures assess the company s ability to pay outstanding debts and cover liabilities and expenses without liquidating its fixed assets 