What is the health index of working capital ratio?

This kind of health index generally thinks that the current ratio should be above 2: 1, and the quick ratio should be above 1: 1.

Working capital ratio, also known as current ratio, refers to the ratio of current assets to current liabilities of enterprises, which is mainly used to measure the ability of enterprises to convert current assets into cash to repay liabilities before short-term debts expire. The higher these two ratios, the stronger the liquidity of enterprise assets and the stronger the short-term solvency; Do the opposite.