acid quick ratio


acid quick ratio
 Financial test of solvency comparing a firm’s liquid assets and liabilities.

American business jargon. 2014.

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 — 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 — 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 — 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

  • quick ratio — See acid test ratio. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • quick ratio — 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. American …   Financial and business terms

  • Quick ratio — Indicator of a company s financial strength (or weakness). Calculated by taking current assets less inventories, divided by current liabilities. This ratio provides information regarding the firm s liquidity and ability to meet its obligations.… …   Financial and business terms

  • Quick ratio — In finance, the Acid test or quick ratio or liquid ratio measures the ability of a company to use its near cash or quick assets to immediately extinguish or retire its current liabilities. Quick assets include those current assets that presumably …   Wikipedia

  • Quick 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

  • Quick Ratio — An indicator of a company s short term liquidity. The quick ratio measures a company s ability to meet its short term obligations with its most liquid assets. The higher the quick ratio, the better the position of the company. The quick ratio is… …   Investment dictionary