Quick Ratio or Acid Test Ratio

The quick ratio measures the liquidity of a business and its ability to meet its short term liabilities and debts. It is calculated by dividing current assets less inventory by current liabilities. It is also known as the Acid Test Ratio.

Last modified September 29th, 2022 by Michael Brown
Read more

Current Ratio

The current ratio measures the liquidity of a business and its ability to meet its short term liabilities and debts. It is calculated by dividing current assets by current liabilities. It is also known as the Working Capital Ratio.

Last modified September 28th, 2022 by Michael Brown
Read more

You May Also Like