Acid-Test Ratio Formula The acid-test ratio, also known as the quick ratio, is a liquidity ratio that is calculated by dividing a company’s most liquid assets by its current liabilities. The ...

A quick ratio tests a company’s current liquidity and solvency. It is a measure of whether the company can pay its short-term obligations with its cash or cash-like assets on hand. (Short term ...

The acid-test ratio is a financial metric that assesses a company’s ability to cover short-term liabilities with its most liquid assets. A higher acid-test ratio suggests a stronger liquidity ...