Quick or acid test ratio calculator
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The quick ratio, sometimes called the acid test ratio, is similar
to the current ratio, but is considered a more reliable indicator
of a company's ability to meet its short-term financial obligations.
Because inventory can sometimes be difficult to liquidate, this
ratio deducts inventory from your assets before computing the ratio.
Potential creditors like to use this ratio because it reveals a
company's ability to pay off under the worst possible conditions.
The formula:Current assets minus inventories, divided by
current liabilities
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