what does a current ratio of 1 5 mean 
a current ratio of 1 5 would indicate that the company has 1 50 of current assets for every 1 of current liabilities for example suppose a company s current assets consist of 50 000 in cash plus 100 000 in accounts receivable its current liabilities meanwhile consist of 100 000 in accounts payable in this scenario the company would have a current ratio of 1 5 calculated by dividing its current assets 150 000 by its current liabilities 100 000 