Answer: This can be explained as follows.
Explanation: A particular ratio can demonstrate the position of a company. For evaluating the position and position of a company the analyst should first compare the company with the industry average. The comparison with industry will imply whether company is in a surviving position or not.
Industry average may not give suitable results therefore comparison with core competitors should also be done.
A company having current ratio of 2.67 shows that such company have a sound financial condition as they have more than double of current ratios for paying their current liabilities .