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NGAcid test ratio calculator
An acid test ratio assesses a company’s ability to cover its short-term liabilities with its most liquid assets.Â
Page written by Ian Hawkins. Last reviewed on June 26, 2024. Next review due April 6, 2025.
An acid test ratio assesses a company’s ability to cover its short-term liabilities with its most liquid assets.Â
Page written by Ian Hawkins. Last reviewed on June 26, 2024. Next review due April 6, 2025.
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
The acid test ratio provides insight into a company’s immediate liquidity and ability to meet short-term obligations without relying on the sale of inventory. It’s an important financial metric for assessing a company’s financial health.
If you’re looking to use an acid test ratio calculator, you can input the values of cash, marketable securities, accounts receivable, and total current liabilities to obtain the ratio result. This can help you evaluate the company’s short-term financial position and its ability to handle unexpected financial challenges.
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