The current ratio is a measure used to evaluate the overall financial health of a company by assessing its ability to pay its short-term obligations using its current assets. A good current ratio is typically considered to be anywhere between 1.5 and 3. However, what counts as a good current ratio will depend on the companys industry and historical performance. A ratio of 1.2 to 2 is also considered good. A ratio of 1 indicates that a company has sufficient current assets to cover its short-term liabilities without having to sell fixed assets, but any ratio lower than 1 is a cause for concern. It is important to note that a good current ratio is not the only measure of a companys financial health, and it should be evaluated in conjunction with other financial ratios and metrics.