Quick Ratio or Acid Test Ratio

The quick ratio measures the liquidity of a business and its ability to meet its short term liabilities and debts. It is calculated by dividing current assets less inventory by current liabilities. It is also known as the Acid Test Ratio.

Quick Ratio or Acid Test Ratio November 15th, 2016Team
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Current Ratio

The current ratio measures the liquidity of a business and its ability to meet its short term liabilities and debts. It is calculated by dividing current assets by current liabilities. It is also known as the Working Capital Ratio.

Current Ratio November 6th, 2016Team
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