Current Ratio
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The amount of long-term debt on the balance sheet: Long-term debt takes longer to repay than short-term liabilities, so it will pull down the overall number if it is large in relation to total liabilities; -
Amount of inventory on hand: If inventory levels are high relative to sales levels, it will take longer for cash from sales receipts turn into cash available for use; and -
Speed at which receivables are collected: Money owed by customers (accounts receivable) represents potential liquidity that has yet been realized. If this money is collected slowly – or not at all – it will reduce working capital and negatively impact the ratios.