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 tool for investors to assess a company's liquidity.

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 ...