Also called acid test ratio or quick ratio, it is a corporations current assets minus inventories divided by current liabilities. By excluding inventory from the formula, the ratio focuses on a ...

The quick ratio is also commonly referred to as the “acid test” ratio. This moniker refers to a quick and simple test gold miners used to use to determine whether samples of metal were true ...

Hence, a range of 1-3 is considered ideal. Quick Ratio: Unlike the current ratio, the quick ratio — the “acid-test ratio” or “quick assets ratio” — indicates a company’s ability to pay short-term ...