There’s no universal safe or danger level. Ideal current ratios vary by industry. A current ratio of 1.0 means the company has $1 in current assets for every $1 in current liabilities. A ratio below 1 ...

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Being able to assess a company’s operating cash flow (OCF)—and how ...

Companies that use accrual basis accounting can assemble their statement of cash flows in one of two ways, using either the direct method or the indirect method. The more commonly used indirect method ...