The quick ratio evaluates a company's ability to pay its current obligations using liquid assets. The higher the quick ratio, the better a company's liquidity and financial health. A company with a ...

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 ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

How well can current assets cover current liabilities? Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Amy is an ACA and the ...

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 ...