Hello ARE Community!
We wanted to follow up on something that came up during the PcM virtual workshop on 9.29.24. There was a question about the current ratio. We wanted to clarify the ratio here since there is a small typo in our slides (that we have corrected moving forward). Please see below is the formula for the current ratio:
Current Ratio = Total Assets / Total Liabilities (per “Firm Financials: Balance Sheet” Black Spectacles video and AHPP page 418).
Let us know if you have any follow up questions!
All the best,
Thomas