Other names are the quick ratio ot the liquid ratio
acid test ratio = quick assets / current liabilitiesacid test ratio = 150000 / 100000acid test ratio = 150 %
trend of acid-test ratio over the past three years
My answer is not able to answered using current keyboard function, the eqaution is very long. but the answer is .5.
Liquidity ratio are designed to test a company's ability to meet its short-term financial obligations. To find the ratio, you take Cash and Cash Equivalent + Marketable Securities + Accounts Receivable divided by Current Liabilities.
Current Ratio: The current ratio is calculated by dividing a company's current assets by its current liabilities. Current assets include cash, cash equivalents, accounts receivable, inventory, and other assets that are expected to be converted into cash or used up within one year. Current liabilities include short-term debts, accounts payable, and other obligations that are due within one year. The current ratio provides a broader view of a company's short-term liquidity and is less conservative than the quick ratio. Formula: Current Ratio = Current Assets / Current Liabilities Quick Ratio (Acid-Test Ratio): The quick ratio is a more conservative measure of short-term liquidity. It excludes inventory from current assets because inventory may not be as easily convertible to cash in a short period. Quick assets, which are included in the numerator, typically include cash, cash equivalents, and accounts receivable (net of allowances for doubtful accounts). Like the current ratio, the quick ratio is used to assess a company's ability to cover its short-term obligations, but it focuses on the most liquid assets. Formula: Quick Ratio = (Cash + Cash Equivalents + Marketable Securities + Accounts Receivable) / Current Liabilities Key Differences: The main difference between the two ratios is that the current ratio includes inventory in its calculation, while the quick ratio excludes inventory. Inventory can take time to sell and convert into cash, making the quick ratio a more conservative measure of a company's ability to meet its short-term obligations quickly. The current ratio tends to be higher than the quick ratio for most companies because it includes a broader range of assets in the calculation. A current ratio above 1 indicates that a company has more current assets than current liabilities, while a quick ratio above 1 indicates that a company can meet its short-term obligations without relying on inventory. Generally, a quick ratio is considered a more stringent test of liquidity, making it particularly useful for companies with slow-moving or obsolete inventory, or those in industries where inventory can be difficult to convert to cash quickly. Both ratios are valuable tools for assessing a company's financial health, but the choice between them depends on the specific circumstances and the level of conservatism desired in the analysis.
Acid-test or Quick Ratio measures the ability of a company to use its cash or near cash assets to extinguish or pay-off its current liabilities immediately. Near cash assets are those that can be quickly converted to cash at close to their book values.Formula:ATR = (Current Assets - (Inventories + Prepayments)) / Current LiabilitiesA company with a quick ratio of less than 1 cannot currently pay-off all its current liabilities. Any good company would want to maintain their acid test ratio to be greater than 1 at all times.
the two ratios that measure liquidity is acid test and current ratio. the acid test ratio is current assets- stock/ current liabilities the current ratio is current assets/ current liabilities
acid test ratio = quick assets / current liabilitiesacid test ratio = 150000 / 100000acid test ratio = 150 %
current ratio and acid test ratio are examples of liquidity ratios'. current ratio is current asset's/ current liabilities. acid test ratio is current assets- stock / current liabilities.
ok
carl is a semi-kin
some where between 1 to 1.5
What is the name of the test for the nucleic acid DNA in the solution.
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inventory
another name for germ tube test.
Another name for a test could be an examination or an assessment