The acid-test ratio is a measure of a ... Acid-Test Ratio. If, for example, cash totals $2,000 ... can help find ways to ward off potential problems. Like the current ratio, ...

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 ...

If the acid test ratio is less than 1, though, it means the company wouldn't be able to pay off its current liabilities with readily available cash and other short-term assets, and it would have ...

The quick ratio is a calculation that measures a company’s ability to quickly meet its short-term obligations with its ... Acid-Test Ratio: Definition, Formula, and Example. Tier 1 Capital ...

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.