Managing Current Assets and Liabilities

Current assets are liquid enough that they can be converted into cash within a short period. Current liabilities are due within 1 year.

The key to managing these is to determine the minimum and maximum levels during the year. How will the debt payments be made? Where will the cash come from?

Comparing the current ratio from past years and to other companies of the same size in the same industry can help determine how your company is doing in this area.