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 ...

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

This is the formula for calculating the acid-test ratio: All the input data for this formula comes from the Balance Sheet.

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.

The Acid Test ratio is a key balance sheet liquidity ratio that helps you estimate how well a company can handle a credit crunch.

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 ...

Therefore, the current ratio is more difficult to calculate but probably offers a more accurate picture of the financial picture than does the acid-test ratio.