Meaning Acid test ratio
What does Acid test ratio mean? Here you find 7 meanings of the word Acid test ratio. You can also add a definition of Acid test ratio yourself
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Acid test ratioAlso called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities.
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Acid test ratioCurrent assets - current liabilities. This measures liquidity.
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Acid test ratioSee quick ratio.
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Acid test ratioRatio of cash, marketable securities and accounts receivable to current liabilities used to provide a more sensitive liquidity index than the current ratio, for it excludes inventories which are not r [..]
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Acid test ratioAcid test ratio refers to a measure of a company's ability to pay current debts from its most liquid, or quick, assets. It is the ratio of current assets minus inventories to total current liabil [..]
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Acid test ratioA term used to measure the short-term ability of a business to meet its obligations. It is calculated as current assets, less stocks and work in progress, divided by current liabilities (also known as [..]
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Acid test ratioAlso called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities.
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