What is the 'current ratio'?

In his latest video, Ed Bowsher looks at the current ratio, which can help you see whether a company has sufficient resources to pay its bills in the near future.

What is the current ratio? - MoneyWeek Videos - YouTube What is the current ratio? - MoneyWeek Videos - YouTube
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Any successful company needs to be able to pay its bills. If it cant do that, theres a danger that creditors will take control or shut the company down.

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Ed Bowsher

Ed has been a private investor since the mid-90s and has worked as a financial journalist since 2000. He's been employed by several investment websites including Citywire, breakingviews and The Motley Fool, where he was UK editor.

 

Ed mainly invests in technology shares, pharmaceuticals and smaller companies. He's also a big fan of investment trusts.

 

Away from work, Ed is a keen theatre goer and loves all things Canadian.

 

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