What is Quick Ratio (Acid Test)?
Quick Ratio (Acid Test) (also called acid test ratio) — A stricter liquidity measure — current assets minus inventory, over current liabilities — showing cover without relying on selling stock.
In simple terms
The quick ratio excludes inventory, which may be hard to sell fast.
Why Quick Ratio (Acid Test) matters when you invest
Understanding quick ratio helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Quick Ratio (Acid Test) — frequently asked questions
What is Quick Ratio (Acid Test)?
A stricter liquidity measure — current assets minus inventory, over current liabilities — showing cover without relying on selling stock.
What does Quick Ratio (Acid Test) mean in the stock market?
A stricter liquidity measure — current assets minus inventory, over current liabilities — showing cover without relying on selling stock. The quick ratio excludes inventory, which may be hard to sell fast.
Can you give an example of Quick Ratio (Acid Test)?
The quick ratio excludes inventory, which may be hard to sell fast.
Put it into practice — open a free account.
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