A weakness of the current ratio is

A) the difficulty of the calculation.
B) that it doesn't take into account the composition of the current assets.
C) that it is rarely used by sophisticated analysts.
D) that it can be expressed as a percentage, as a rate, or as a proportion.

Current Ratio

An assessment ratio that evaluates how well a company can meet its obligations due within the next year, by dividing its current assets by its current liabilities.

Current Assets

Current Assets are assets that a company expects to convert to cash or use within one year, including cash, inventory, and accounts receivable.