How to Improve Current Ratio

Current ratio refers to the firm's ability to service its short-term obligations. It is the ratio of current assets to current liabilities. For example, if the firm's total current assets are 200,000 and the total current liabilities are $80,000 then the current ratio is: 200,000 / 80,000 = 2.5. A healthy current ratio should be greater than 2.0. To increase current ratio, current assets should be increased or the current liabilities should be reduced.

Ways to improve your current ratio:
1) Pay off some debts like bank overdraft.
2) Increase current assets from new equity contributions.
3) Get a loan to increase your cash balance.
4) Renegotiate short-term debts to long-term financing.
5) Buy inventory with equity or long-term debt.
6) Increase the sales which will increase cash or accounts receivable.
7) Convert fixed assets to current assets, for example, sell unused office equipment or property for cash.

Safest Banks in Latin America

Banco del Estado de Chile (Chile) is ranked No. 1 among the Safest Banks in Latin America by Global Finance magazine (October 2011 issue), followed by Banco de Chile (No. 2) and Banco de Crédito e Inversiones (No. 3).

Banco de Chile is also rated as the safest private bank in Latin America according to the World's Safest Bank 2010 ranking published by Global Finance. The Bank has received many awards and recognition. It was selected for the second consecutive year as the best sub-custodian bank in Chile, according to the report “World's Best Sub-Custodian Banks” in Global Finance magazine.

In the seventh version of the annual survey on private banking conducted by the magazine Euromoney, Banco de Chile obtained 1st place in Chile in the following categories: Foreign Exchange, Lending / Financing Solutions, Real Estate Investment and Specialized Services Corporate Executives. In addition, it was chosen as the best bank in Chile, based on the results of the annual survey “Top 1000 World Banks” conducted by British magazine The Banker.