Sports Direct Current Ratio Analysis

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For the financial strength analysis, current ratio and quick ratio is evaluated here. 7.3.1 Current Ratio: The current ratio is basically the liquidity ratio which is calculated as current assets di-vided by the current liabilities of the company. It tells about the company financial position that how much assets of the company can fulfill the liabilities of the company in case if the company liquidates. Sports Direct has a current ratio of 2.3 while the industry average for the current ratio is 1.35 that is very low. The current ratio of 2.3 means that for liability of 1 company has the ability to pay the 2.3 which shows the financial strength and effectiveness of the Sports Direct Company. It also measures the ability of the company to pay

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