President Trump didn't exactly boot Steve Bannon from his ruling circle of relatives and Wall Street hotshots he might like to have as relatives. True, he threw Bannon off the National Security Council in an abrupt manner. And he piled further indignity on the self-proclaimed architect of hiâ¦ Read more.
What is the 'Acid-Test Ratio'. The acid-test ratio is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities. Commonly known as the quick ratio, this metric is more robust than the current ratio, also known as the working capital ratio, since it ignores illiquid assets such as inventory. Calculated by:
Those worrisome ratios have investors concerned that these companies won't be able to easily pay their bills if oil prices remain weak. A closer look at the numbers While there are many ways to measure liquidity, two of the more common metrics are the quick ratio and the current ratio, which measure a company's liquidity by gauging its ability to meet its short-term obligations.