The quick ratio, also known as the acid-test ratio, measures a company's ability to pay off its current debt. Current debt includes any liabilities coming due within a year, like accounts payable ...

An acid-test ratio greater than 1 generally indicates that a company's liquidity is stable, while a quick ratio less than 1 might signal that a company could have trouble paying its bills if it ...

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 ...

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 formula is: ...

A stringent measure of a company’s ability to cover its immediate debts and obligations with its short-term assets.

If the acid test ratio is less than 1, though, it means the company wouldn't be able to pay off its current liabilities with readily available cash and other short-term assets, and it would have ...

Establishing the quick ratio as a core benchmark for micro and small enterprises would represent a timely and strategic move ...

Acid-Test Ratio While the current ratio has value in measuring liquidity, business people often referred to the quick ratio as the real acid test to determine your short-term financial security.

The quick ratio is often referred to as the acid test because it offers a strong glimpse of your business's ability to liquidate assets. Liquidity Ratios The quick ratio equals current assets ...