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Quick Ratio (Acid-Test Ratio)
Quick Ratio (Acid-Test Ratio) July 21, 2023. The Quick Ratio, also known as the Acid-Test Ratio, is a financial metric that assesses a company’s short-term liquidity position. It is used to determine whether a business has sufficient cash and cash equivalents to meet its current liabilities without relying on inventory or long-term assets.
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