Analysis of Current and Acid-Test Ratios for Marriott Financial Case

Dec 15, 2025

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This document evaluates the financial health of Marriott by calculating key liquidity ratios, specifically the current ratio and the acid-test (or quick) ratio. Using given figures, we derive a current ratio of 1.182 and an acid-test ratio of 0.7925. The analysis highlights implications for Marriott's ability to meet short-term obligations with available liquid assets, aiming to provide insights into financial stability for stakeholders.

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Analysis of Current and Acid-Test Ratios for Marriott Financial Case

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SST E 3-14

MARRIOTT CASE

L/SE = 1.6185 L = 1.6185 SE By substitution, 2.6185 SE = $9,107 SE = $3,478

Current ratio = CA/CL CA = Current ratio x CL CA = 1.182 x $1,802 CA = $2,130

Acid test ratio = Quick assets/CL = Cash + Acc. & Notes Rec./CL = ($817 + Acc. & Notes Rec.)/$1,802 = 0.7925 ($817 + Acc. & Notes Rec.)/ = 0.7925 x 1,802 = $1,428 Acc. & Notes Rec. = $1,428 – 817 = $611