This compares the assets to liabilities in the current year for a company. Before buying into a company it would be nice to know if the company has enough liquidity to pay for it’s current debts (debts due within a year).
If this number is below 1, then the company does not have enough cash to cover it’s debts due within a year. Different businesses will have different ratio’s based on their industry. Try comparing the company to other companies in the same business to get an idea of what the current ratio should be for the company in question.