Acid Test Ratio in Business Formulas

The acid test ratio is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities. And is denoted by ATR.

Formulas to find Acid Test Ratio in Business

fxAcid Test RatioGo

List of variables in Business formulas

fx Cash Go

fx Accounts Receivable Go

fx Short Term Investments Go

fx Current Liabilities Go

FAQ

What is the Acid Test Ratio?

The acid test ratio is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities.

Can the Acid Test Ratio be negative?

{YesorNo}, the Acid Test Ratio, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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