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In the scientific method,theories can be considered "hunches" or best guesses.
Solvency Ratio
Solvency Ratio indicates a company's ability to meet its long-term debts and obligations, measuring the size of its after-tax income relative to its liabilities.
Current Ratio
A financial ratio indicating how well a company can settle short-term debts using its current assets.
Acid-test Ratio
A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets including cash, marketable securities, and receivables.
Income from Continuing Operations
This refers to the earnings generated from the normal business activities excluding one-time transactions, discontinued operations, and other irregular items.
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