Liquidity ratio is measured based on checking the ability of the company to pay off its short-term obligations (Roa 2006). Therefore this type of ratio measures the short term standing of the company.
3.1.1 Current Ratio - Based on experts in the finance field, a current ratio of 2:1 is a safe benchmark to indicate ability to cover bills within a year (Paramasivan and Subramanian 2011). This means that Smuckers’ would have twice the amount of current assets to current liabilities. In 2011- 2013 Smuckers had an impressive average of over 2.1 however in 2014 the current ratio dropped to 1.73 due to purchases made by the company (See Table 1). By 2015 the current ratio increased from 1.73 to 2.1 (See Table 1). Although Smuckers maintained a good
3.1.1 Current Ratio - Based on experts in the finance field, a current ratio of 2:1 is a safe benchmark to indicate ability to cover bills within a year (Paramasivan and Subramanian 2011). This means that Smuckers’ would have twice the amount of current assets to current liabilities. In 2011- 2013 Smuckers had an impressive average of over 2.1 however in 2014 the current ratio dropped to 1.73 due to purchases made by the company (See Table 1). By 2015 the current ratio increased from 1.73 to 2.1 (See Table 1). Although Smuckers maintained a good