Definition
The Quick Ratio, also known as the acid-test ratio, is a measure of a company`s ability to meet its short-term obligations with its most liquid assets, providing insight into its financial health.
Frequently asked questions
What is quick ratio also known as acid test ratio?
The quick ratio, or acid test ratio, shows if a company can pay short-term liabilities using its most liquid assets.
What does the quick ratio measure?
The quick ratio shows if a company can pay its short-term debts with its most liquid assets.
What does the quick ratio or acid test ratio indicate?
The quick ratio indicates a company`s ability to pay its short-term debts using its most liquid assets.