Acid Test Ratio, Definition

The Acid Test Ratio is the ratio of a company's current assets subtracted from its inventories, accruals and prepaid items to current liabilities. The test is used to determine whether a firm has sufficient short-term assets to cover its immediate liabilities without selling inventory.

Site Index: A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Recent Posts

The Fed at the Crossroads	May 17
Afternoon Snapback Brings Narrow, Mixed Finish	May 16
Stock Market Basics	May 16

Marketplace Sponsors

Home - Forum - Articles - Reviews - Brokers - Charts - Newsletter - Advertise - Contact Us

The information contained on TradersLog.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. TradersLog.com is not a broker, nor does it have an affiliation with any broker.