Why is Whole Foods Market current ratio at 1.6:1?

The Current ratio is actually the ratio of the company’s assets to its debts and it also measures whether the company is able to pay up its debts or bills over the coming next twelve months or not. It can also be calculated and expressed as:

Current Ratio of the company = Current assets/ current liabilities.

In case the company shows the ratio of 1.58, then it means that the firm has enough resources or plenty of money to pay back its debts. If it goes lower than 1.58, then it means the company is unable to meet the current obligations. But, if you want to compare the company’s current ratio with its competitors in the industry, say, safeway which as a current ratio of 0.98 or Kroger’s 0.94, then it will provide you with a better knowledge. Precisely, a whole food current ratio of 1.58 is an indication that the industry is currently able to meet the creditor’s demands.

I hope my answer helps. For more, you can try Wikipedia.

Thanks.