Glossary
Glossary
Quick Ratio (Acid Test)
Glossary
Quick Ratio (Acid Test)
Definition
Measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing current assets minus inventory by current liabilities. A ratio above 1 indicates good short-term financial health.
Related Calculator
Related Blog
Try it now
Gathering all your data has never been simpler.
Automatic Data Pulls
Automatic Data Pulls
Set Alerts
Set Alerts
Visual Data Preview
Visual Data Preview
Try it now