Balance sheets illustrate a company's financial stability via assets and liabilities. The acid-test ratio measures liquidity, with values over 1 indicating strong liquidity. High acid-test ratios ...

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Gordon Scott has been an active investor and technical analyst or ...

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The quick ratio, also known as the acid-test ratio, measures a company's ability to pay off its current debt. Current debt includes any liabilities coming due within a year, like accounts payable and ...