December 25, 2020

Acid Test Ratio

Acid test ratio

  • An indicator of whether it has sufficient short-term assets to cover its short-term liabilities
  • disregards current assets that are difficult to liquidate quickly such as inventory
https://www.wallstreetmojo.com/wp-content/uploads/2018/12/Acid-Test-ratio-Formula-1.jpg







https://www.investopedia.com/terms/a/acidtest.asp


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