The current ratio formula is calculated by dividing total current assets by total current liabilities. This calculation shows investors, creditors, and management how well the short-term debt can be paid off using short-term assets. This is an important calculation for two main reasons.
1981: Israel bombs Baghdad nuclear reactor. The Israelis have bombed a French-built nuclear plant near Iraq's capital, Baghdad, saying they believed it was designed to make nuclear weapons to destroy Israel. It is the world's first air strike against a nuclear plant.
Though no one knew it at the time, Iran's Islamic revolution had begun. The Iranian Revolution. Fast forward to New Years Eve, 1977: President Carter toasted the Shah at a state dinner in Tehran, calling him an island of stability in the troubled Middle East. What the president also knew, but chose to ignore, was that the Shah was in serious trouble.