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:
For, a ratio is a relationship. The two numbers in a ratio are called the terms; the first and the second. When the first term is larger, we say it is so many times the smaller. 15 is three times 5.