Andrew Brookes/ Getty Images The acid-test ratio (ATR), also commonly known as the quick ratio, measures the liquidity of a company by calculating how well current assets can cover current ...

Also called acid test ratio or quick ratio, it is a corporations current assets minus inventories divided by current liabilities. By excluding inventory from the formula, the ratio focuses on a ...

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 ...

An “acid test” is a slang term for a quick test designed to produce instant results. The quick ratio measures a company’s capacity to pay its current liabilities without needing to sell its ...

What is the quick ratio? The quick ratio measures a company's ability to pay its short-term liabilities when they come due. It's also called the acid test ratio, or the quick liquidity ratio ...

How well can current assets cover current liabilities? Reviewed by Amy Drury The acid-test ratio (ATR), also commonly known as the quick ratio, measures the liquidity of a company by calculating ...