I’m not understanding the current ratio and debt to equity ratio.
I thought the current ratio is assets/liabilities
And debt to equity is well, debt/equity.
What doesn’t make sense is how can a company have the following:
Debt-to-equity: 0.15
Current ratio: 1.02
This says the company has a lot of equity and barely any debt, but total assets are barely larger than total liabilities?
Doesn’t make sense to me.