1.0. The minimum acid-test ratio a company should have. Firms with a ratio of less than 1 are short on liquid assets to pay their current debt obligations or bills and should, therefore, be ...

For example 5:1. Back to top. Activity: How to solve problems using ratio. Complete this interactive activity to understand how to use ratio to solve problems. Then test your knowledge.

The quick ratio is a calculation that measures a company’s ability to quickly meet its short-term obligations with its most liquid assets.

For example 5:1. Back to top. Activity: How to solve problems using ratio. Complete this interactive activity to understand how to use ratio to solve problems. Then test your knowledge.

The acid-test ratio, also known as the quick ratio, measures the liquidity of a company. ... Example of the Acid-Test Ratio . Consider Tesla's balance sheet for Q1-2024.