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 ...

An “acid test” is a slang term for a quick ... as all current liabilities are included in the formula. What the Quick Ratio Can Tell You The quick ratio measures the dollar amount of liquid ...

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 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 ...

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 ...