Calculate the current ratio for each business below. Which business has the best short-term solvency position given your calculations?

Gamma Company has the best short-term solvency position, because its current ratio is the highest. Gamma Company's current ratio is calculated as its current assets divided by its current liabilities, or $60,125/$32,500 = 1.85. Thus its current assets are 1.85 times its current liabilities, meaning that, of all the companies shown, Gamma Company is best able to pay its current liabilities as they come due.​