How do I work out how my current ratio is determined by QBCC
Your short-term liquidity, which reflects your ability to fulfill immediate financial obligations, is assessed using the ratio of current assets to current liabilities.
To satisfy your current ratio requirements, your total current assets—such as cash, accounts receivable, inventory, and work in progress—must exceed your total current liabilities, which include outstanding bills, trade payables, and tax obligations. Current assets and liabilities are those that are expected to be settled within the next 12 months.