Using CURRENT RATIO in your Google Scanner

Investopedia explains 'Current Ratio'

The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.

From the above, we will have an idea that Current Ratio < 1 are companies that have pay-back problems. This type of companies, we'll try to avoid. Thus, one of the screening criteria that i have use in Google Scanner is as follows:

Mkt Cap : 100M to Max
Div Yield: 5-15
Current Ratio < 1

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