Formula
to calculate acid test ratio:
Acid
Test Ratio = (cash
+ marketable securities) / current liabilities
Acid
test ratio definition and explanation:
The acid
test ratio measures the immediate amount of cash
immediately available to
satisfy short term debt.
The acid test ratio is included in the financial
statement ratio analysis spreadsheets highlighted in the
left column, which provide formulas, definitions,
calculation, charts and explanations of each ratio.
The acid test ratio is listed in our liquidity
ratios.
The acid test ratio and other ratios are key
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Spreadsheets to
calculate ratios (includes formulas, definitions,
explanations and charts):
See list
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios our spreadsheets
define, calculate and explain.
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test ratio or quick ratio.
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The acid test ratio
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