Concept
Version 5
Created by Boundless
Acid Test Ratio
![A low acid-test ratio may be a sign of poor use of cash by a business.](../../../../../../../../../figures.boundless-cdn.com/12614/full/6881494634-7ae0ae1168.jpeg)
A low acid-test ratio may be a sign of poor use of cash by a business.
The acid-test ratio is similar to the current ratio except the value of inventory is omitted from the calculation.
Source
Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:
"Throwing Money Away | Flickr - Photo Sharing!."
http://www.flickr.com/photos/76657755@N04/6881494634/in/photostream/
Flickr
CC BY.