A company has a cash ratio of 2.3. what does this imply?

This implies that the company has an unnecessarily large amount of cash supply. Generally cash ratio is defined as ratio of a company's total cash and cash equivalents to its current liabilities. Then cash ratio can be determined by using the formula which is (Cash + Cash equivalents) Ă· Current liabilities. If cash &cash equivalents > current liabilities, it means the company has more cash. If cash &cash equivalents = current liabilities, it means the company has enough cash to pay the liabilities ... If cash &cash equivalents