Can a current ratio ever be too high?

Yes, a current ratio can be too high, indicating potential inefficiencies in a company's asset management. A very high current ratio may suggest that a company is not effectively utilizing its assets to generate revenue, as it may be holding excessive cash or inventory instead of investing in growth opportunities. Additionally, it could signal a lack of urgency in managing payables or a conservative approach that might limit competitive advantage. Generally, an optimal current ratio balances liquidity with efficient asset utilization.