Acid test ratio

• Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities.

• Is another term to describe the Quick Asset Ratio. It measures an organization's liquidity by adjusting current assets by subtracting inventories and then dividing by the current liabilities.

• See Quick Ratio.


Follow this link for all the terms related to ratio.

 Embedded terms in definition
Current assets
Current liabilities
Quick asset ratio
Quick ratio
 Related Terms
Appraisal ratio
Asset coverage test
Asset/equity ratio
Average price earning ratio
Best interests of creditors test
Cash flow coverage ratio
Cash ratio
Common equity ratio
Constant payout ratio dividend policy
Conversion ratio
Cost benefit ratio
Current pe ratio
Current ratio
Days' sales in inventory ratio
Debt equity ratio
Debt ratio
Debt service coverage ratio
Debt to capital ratio
Debt to equity ratio
Debt/equity ratio
Dividend payout ratio
Earnings retention ratio
Expense ratio
Fair and equitable test
Financial ratio
Fish and bait test
Fixed asset turnover ratio
Fixed charge coverage ratio
Funding ratio
Gold/silver ratio
Hedge ratio delta
Income replacement ratio
Interest coverage ratio
Interest coverage test
Inventory turnover ratio
Lagging pe ratio
Leading pe ratio
Long term debt ratio
Long term debt to equity ratio
Low price earnings ratio effect
Margin of profit ratio
Market book ratio
Market to book ratio
One tail test
Operating profit ratio
P/e ratio
Payout ratio
Pe ratio
Pe ratio to eps growth
Plowback ratio
Preferred equity ratio
Price buy zone ratio
Price earnings ratio
Price to book ratio
Price to cash flow ratio
Price to earnings ratio
Price to sales ratio
Price/book ratio
Price/earnings p/e ratio
Price/sales ratio
Projected pe ratio
Q ratio or tobin's q ratio
Quick acid test ratio
Quick asset ratio
Quick ratio
Ratio analysis
Ratio of exchange
Ratio of exchange in market price
Ratio spread
Ratio writes
Receivables turnover ratio
Retention ratio
Reward to volatility ratio
Sharpe ratio
Target dividend payout ratio
Target payout ratio
Tick test rules
Times interest earned ratio
Total debt to equity ratio
Trailing pe ratio
Two tail test
Upside/downside ratio
Working capital ratio
Yield ratio

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