Inventory(given acid test ratio,current liabilities and current assets)

Formula

Inventory(given acid test ratio,current liabilities and current assets) formula
I
inventory
ATR
acid test ratio
CL
current liabilities
CA
current assets

Formula description

In finance, the Acid-test or quick ratio or liquid ratio measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately. Quick assets include those current assets that presumably can be quickly converted to cash at close to their book values. A company with a Quick Ratio of less than 1 can not currently pay back its current liabilities.

Calculator (how to use calculator?)

Inventory(given acid test ratio,current liabilities and current assets) formula
ATR
CL
CA
I
Precision

Formula code








References

  1. Wikepedia:Quick ratio.

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