Acid test

Acid Test
A ratio used by financial analysts where the available assets (cash, marketable securities, and account receivables) are divided by the current liabilities (Current Assets/Current Liabilities). Also called the Quick Ratio.

acid test ratio
See quick ratio.
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acid test ratio
stringent test of liquidity ; also called quick ratio. The ratio is found by dividing the most liquid current assets (cash, marketable securities, and accounts receivable) by current liabilities.

Acid test ratio
Definition: The acid test or quick ratio is the current ratio modified to provide a more prudent measure of short-term liquidity. The acid test ratio deducts stock and work-in-progress from current assets.

ACID TEST - A stern measure of a company's ability to pay its short term debts, in that stock is exclud...
ACID TEST RATIO - Is another term to describe the Quick Asset Ratio. It measures an organization's liqu...

acid test ratio (also called the quick ratio)
The sum of cash, accounts receivable, and short-term marketable
investments (if any) is divided by
total current liabilities to compute this ratio. Suppose that the short-term ...

Acid Test Ratio
Indicator of a company's financial strength (or weakness) calculated by taking current assets minus inventories, accruals, and prepaid items, divided by current liabilities. Also called the quick ratio.

ACID TEST RATIO " A more stringent test of a corporation's liquidity than current ratio. It is calculated by adding cash, cash equivalents, and accounts and notes receivable and dividing that sum by the total current liabilities.

acid test - Short-term assets minus accounts receivable and inventory, divided by short-term liabilities. This is a test of a company's ability to meet its immediate cash requirements.

Acid test / Quick ratio:
A liquidity ratios measuring a company's ability to pay immediate liabilities. It is expressed as: current assets less inventories, divided by current liabilities. Compare with Quick ratio.

acid test ratio: Also called a quick ratio, an indicator of company's financial strength by dividing current assets minus inventories by current liabilities.
acquiring company: A company that acquires a targeted company.

Acid test ratio
Definition: How many times over a company's Cash and Accounts Receivable are able to pay the company's Current Liabilities. The formula: (Cash + Accounts Receivable) / Current Liabilities.

Acid Test Ratio
A ratio that tests a corporation's liquidity. It is a stricter test than if the current ratio is used.

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

Acid Test - The expression Acid Test, also known as quick ratio, is an indicator of liquidity of a very short term that seeks to...

Acid Test Ratio - 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.

Liquid Ratio (Acid Test)
The ratio of Total Current Assets excluding Inventory to : Total Current Liabilities
1.8:1 ...

Quick Ratio or Acid Test = (Current Assets - Inventory) / Current Liabilities
Quote The highest bid to buy and the lowest offer to sell a security in a given market at a given time.
R ...

Quick ratio (or Acid Test Ratio) - This ratio is a more rigorous and informative test than just the current ratio in measuring a firms short-run liquidity.

A quick ratio or acid test ratio is a more rigorous test than the current ratio of short-run solvency.

Acid test: The ratio of current assets (excluding stock) to current liabilities.
Acquisitions: operations of a reporting entity that are acquired in a period. Separate disclosure of turnover, profits, etc must be made.

Acid test ratio (current assets - stocks) ÷ current liabilities. A measure of a company's ability to pay short term debt.... Acquisition The purchase, by a company, of another company, a business, product lines or brands....

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Liquidity Trap
In economics, a liquidity trap is a situation when the economy is stagnant and the interest rate is close to 0 percent. At such times, peopl...(Read more)
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Sometimes called the acid test, the quick ratio is an indicator of a company's ability to meet its short-term liabilities. It is the sum of a company's cash plus accounts receivable plus short-term investments divided by its current liabilities.

Fund performance is the acid test of fund management, and in the institutional context accurate measurement a sine qua non.

The quick ratio, sometimes called the acid test ratio, is similar to the current ratio, but is considered a more reliable indicator of a company's ability to meet its short-term financial obligations.

The quick ratio (also known as acid test) is a financial ratio similar to the current ratio, but more stringent. It is defined as: current assets minus stocks, divided by current liabilities.

Quick Ratio falls under several names, including the Acid Test and Liquid Ratio. This financial ratio is used to measure a businesses' reliance on external finance and whether it has enough working capital to cover its day to day operations.

Ratios used to judge the adequacy of liquid assets for meeting short-term obligations as they come due, including (1) the current ratio, (2) the acid test ratio, (3) the inventory turnover ratio, and (4) the accounts receivable turnover ratio.

Indicator of a company's financial strength (or weakness). Calculated by taking current assets less inventories, divided by current liabilities. Also called the Acid Test ratio.
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Quick ratio Indicator of a company's financial strength (or weakness). Calculated by taking less inventories, divided by . Also called the Acid Test ratio.

Also known as the acid test ratio. It is a more stringent measure of short-term liquidity than the current ratio because it excludes inventories from current assets (which presumes that current liabilities cannot be paid with inventory).

into one worldwide business that has an integrated, global strategy is not easy. It presents one of the stiffest challenges for managers today. Developing and implementing an effective global strategy is the acid test of a well-managed company.

A commonly used, but not always accurate, proxy for a firm's liquidity. The quick ratio is calculated by subtracting inventory from current assets and then dividing the result by current liabilities. Sometimes called the acid test ratio.

Calculated by taking current assets less inventories, divided by current liabilities. This ratio provides information regarding the firms liquidity and ability to meet its obligations. Also called the Acid Test ratio.

Thus a more conservative liquidity ratio is the acid test ratio -- (current assets - inventory)/current liabilities -- which excludes relatively illiquid inventories.

Short-term solvency ratios Ratios used to judge the adequacy of liquid assets for meeting short-term obligations as they come due, including (1) the current ratio, (2) the acid test ratio, (3) the inventory turnover ratio, ...

This ratio provides information regarding the firm's liquidity and ability to meet its obligations. Also called the Acid Test ratio. Quotation The bid and offered prices a dealer is willing to buy or sell at.

Also called the Acid test ratio. Quid pro quo An arrangement allowing a firm to use research from another firm at no cost in exchange for executing all of its trades with the firm that provides the research.

See also: Expense, Acid test ratio, Banks, Funding, Quick ratio