In order to calculate the acid test ratio, you'll need to look at a company's most recent balance sheet.

The acid-test ratio is a measure of a company's liquidity, although it is mostly used when a company is believed to be illiquid. It is a ratio that measures a company's ability to meet its current ...

The acid-test ratio measures a company's ability to cover short-term liabilities with its most liquid assets. A ratio above 1 suggests good liquidity; below 1 indicates potential payment struggles ...

Investors evaluate a company's ability to satisfy short-term debts with liquid assets using the quick ratio. Find out how to calculate it, interpret it, and more.

What Is the Quick (Acid Test) Ratio? The quick ratio is a metric that offers investors and analysts a simple look at how liquid a company is in the short term by comparing the value of its most ...

A liquidity ratio that measures a company’s ability to meet its current obligations by removing inventory from a company’s current assets. This ratio reflects the illiquidity of inventory and ...