How well can current assets cover current liabilities? Reviewed by Amy Drury The acid-test ratio (ATR), also commonly known ...

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 ...

The quick ratio is also commonly referred to as the “acid test” ratio. This moniker refers to a quick and simple test gold miners used to use to determine whether samples of metal were true ...