Be careful to use only trade receivables and trade payables (i.e. receivables from customers and payables to suppliers). Do not include any receivables or payables from employees, officers, friends, relatives, etc. If 50% or more of your sales are C.O.D., then use trade receivables plus cash, divided by accounts payable to determine this ratio.
The ratio should be 2 or higher. If it is under 1 then your company is probably in trouble. Sales and receivables are not great enough to cover what is owed to suppliers. If this is the case, then look at pricing very carefully. You are probably not charging enough to cover expenses. You are "robbing Peter to pay Paul."