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Rationalize the denominator. Assume that all variables represent positive numbers.
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Acid-Test Ratio
A financial metric that measures a company's ability to pay off its current liabilities with its quick assets.
Current Ratio
A metric used to evaluate a corporation's capability to meet obligations that are short-term or due within a year.
Short-Term Investments
Investments that are readily marketable and intended to be converted into cash within the next year or operating cycle, whichever is longer.
Total Current Liabilities
Total current liabilities are the sum of all debts and financial obligations a company owes within the next year.
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