Acid Test Ratio Calculator | Sample Business Plan

Acid Test Ratio Calculator




Current Assets:

Inventories:  

Current Liabilities:  

    

Solution




Acid-Test (Quick) Ratio=  



Acid Test Ratio Formula


Acit Test Ratio =

(Current Assets - Inventories) / Current Liabilities

What is Acid Test Ratio (Quick Ratio)?

The Acid Test Ratio is used by company's to to evaluate their ability to pay short term debt with assets that are immediately available to transfer to cash. Current Assets and Current Liabilities refers to those items that fall within 1 year; assets(revenues) or liabilities(expenses) that convert within a year.