The quick ratio or acid test is a calculation that measures a company's ability to meet its short-term obligations with its most liquid assets.
 | | Term of the Day | Words to Know | | |  | | Quick Ratio | | The quick ratio is an indicator of a company's short-term liquidity position and measures a company's ability to meet its short-term obligations with its most liquid assets. Since it indicates the company's ability to instantly use its near-cash assets (assets that can be converted quickly to cash) to pay down its current liabilities, it is also called the acid test ratio. An acid test is a quick test designed to produce instant results—hence, the name. | | Read More » | | SPONSORED BY INVESCO | | The Complete Guide to ETFs | | ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. | | Learn More » | | | Current Assets | | Current assets are a balance sheet item that represents the value of all assets that can reasonably be expected to be converted into cash within one year. | | Read More » | | | Liability | | A liability is defined as a company's legal financial debts or obligations that arise during the course of business operations. | | Read More » | | | Liquid Asset | | A liquid asset is an asset that can easily be converted into cash within a short amount of time. | | Read More » | | | Accounts Receivable | | Accounts receivable is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
/drawing_chart-5bfc37a24cedfd0026c43f8f.jpg)
No comments:
Post a Comment