Acid-test ratio

Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • acid test ratio — Also known as the quick ratio. An accounting ratio designed to test the short term insolvency of a company. This ratio is usually calculated as current assets (with the exception of stocks) divided by creditors falling due within one year.… …   Law dictionary

  • Acid-Test Ratio — A stringent indicator that determines whether a firm has enough short term assets to cover its immediate liabilities without selling inventory. The acid test ratio is far more strenuous than the working capital ratio, primarily because the… …   Investment dictionary

  • Acid Test Ratio — Liquiditätsgrade sind insbesondere in der Unternehmensfinanzierung und der Finanzbuchhaltung verwendete betriebswirtschaftliche Kennzahlen, mit denen die Fähigkeit eines Unternehmens, seinen Zahlungsverpflichtungen fristgerecht nachzukommen,… …   Deutsch Wikipedia

  • acid test ratio — Another name for the quick ratio. American Banker Glossary Also called the quick ratio, the ratio of current assets minus inventories ( inventory), accruals ( accrued interest), and prepaid items to current liabilities. Bloomberg Financial… …   Financial and business terms

  • acid-test ratio — Fin an accounting ratio used to measure an organization’s liquidity. The most common expression of the ratio is: (Current assets – Inventory) / Current liabilities = Acid test ratio If, for example, current assets total $7,700, inventory amounts… …   The ultimate business dictionary

  • acid test ratio — / æsɪd test reɪʃɪəυ/ noun same as liquidity ratio …   Dictionary of banking and finance

  • acid test ratio — a ratio of cash, receivables, and marketable securities to current liabilities, used in determining credit risks. * * * …   Universalium

  • acid-test ratio — See: liquid ratio …   Accounting dictionary

  • acid-test ratio — See liquid ratio …   Big dictionary of business and management

  • acid test ratio — a ratio of cash, receivables, and marketable securities to current liabilities, used in determining credit risks …   Useful english dictionary


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.