Acid Test Ratio

An acid test ratio, also referred as quick ratio calculator performs the calculation to know whether the company will be able to meet its current liabilities with the short term assets it has.

Calculator of Acid Test Ratio

Formula of Acid Test Ratio

Acid test Ratio=(Cash + Accounts Receivable + Short term Investments) / (Current Liabilities)

Where,

• Cash - Money or currency that can be accessed immediately (in rupees)
• Accounts Receivable - Money owed to a company by providing the services (in rupees)
• Short term Investments - Account in the current assets section of a company balance sheet (in rupees)
• Current Liabilities - Company debts or obligations that are due within one year (in rupees)