How does current assets indicate success or failure of a company

Look it up in your book!

Thank you.

Sorry to be harsh, but if you do a little bit of reading then you can find the answer. This board is not hear to answer your homework problems, it is her to help assist you after you have made an actual attempt to do your homework and you have questions.

Analysing the performance of any business just on one aspect is not appropriate. Current assets indicate how a company can meet its current obligations with the available current assets. There are cases where a company with a negative working capital has been making good profits and still surviving. I would suggest you visit Welcome to Investopedia.com - Your Source for Investing Education (http://www.investopedia.com) where you will find a good tutorial on the subject.