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Water-screening is an especially useful technique when:
Current Ratio
The current ratio is a liquidity metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.
Note Receivable
A written promise that amounts will be received by the person holding the note, usually involving interest.
Return Ratio
A financial metric used to measure the efficiency or profitability of an investment, calculated by dividing the gain (or loss) from the investment by its cost.
Total Assets
The sum of all assets owned by an entity, including both current and long-term assets, representing the total value of what the entity owns.
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