Acid-Take a look at Ratio Definition: Which means that, Parts, and Example

Acid-Take a look at Ratio Definition: Which means that, Parts, and Example

What Is the Acid-Test Ratio? The acid-test ratio, commonly known as the quick ratio, uses a firm’s balance sheet data as an indicator of whether it has sufficient short-term assets to cover its short-term liabilities. Key Takeaways The acid-test, or quick ratio, compares a company’s most short-term assets to its most short-term liabilities to see if