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What is: Acid Test Ratio

Discussion in 'Technical Analysis' started by shabbir, Apr 25, 2017.

  1. shabbir

    shabbir Administrator Staff Member

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    Acid Test Ratio is a measure of the ability of a company to pay its liabilities using quick assets by converting them into cash in a very short span of time.

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    shabbir, Apr 25, 2017
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  2. bhat64

    bhat64 Apprentice

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    Shabbir, what is difference between current ratio and acid test ration then? Ideally what should the value of the ratio be? > 1?


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    bhat64, May 9, 2017
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  3. shabbir

    shabbir Administrator Staff Member

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    Possibly two names.
     
    shabbir, May 9, 2017
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