Acid-test ratio calculation
Hello I am looking at the latest annual report for a company called Mosaic and I need help calculating the acid-test (quick) ratio for this company. If I understand correctly the formula to solve this is:
(Cash + Short Term Investments + Receivables (net) ) / Current Liabilities
My question is the following: I would like for someone to tell me: Are the components for the acid-test found only in current assets? If so, which of these accounts are the short term investments?
Current Assets:
Cash and cash equivalents
Receivables, net
Receivables from Cargill, Inc. and affiliates
Inventories
Deferred income taxes
Other current assets
Total Current Assets
Property, plant and equipment, net
Investments in non-consolidated companies
Goodwill
Other assets
Total Assets
Investments in non-consolidated companies is a long term asset so I am not sure whether to include in the acid-test ratio. Thanks in advance.