However, special circumstances can affect the meaningfulness of the current ratio. For example, a financially healthy company could have an expensive one-time project that requires outlays of cash, say for emergency building improvements. Because buildings aren’t considered current assets, and the project ate through cash reserves, the current ratio could fall below 1.00 until more cash is earned. When inventory and prepaid assets are removed from current assets before they are divided by current liabilities, Walmart’s quick ratio drops even lower than its current ratio. Since Walmart’s inventory is significant, it would make more sense to compare Walmart to other major retailers using the quick ratio rather than the current ratio. The current ratio of 1.0x is right on the cusp of an acceptable value, since if the ratio dips below 1.0x, that means the company’s current assets cannot cover its current liabilities.