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Acid Test Ratio Calculator

Cash (rupees)
Accounts Receivable (Rupees)
Short-term Investments (Rupees)
Current Liabilities (Rupees)
Acid Test Ratio (Rupees)=

 
   
  
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Formula used:
Acid test Ratio=
(Cash + Accounts Receivable + Short term Investments) / (Current Liabilities)

Where,

Cash - Money or currency that can be accessed immediately (in rupees)

Accounts Receivable - Money owed to a company by providing the services (in rupees)

Short term Investments - Account in the current assets section of a company's balance sheet (in rupees)

Current Liabilities - Company's debts or obligations that are due within one year (in rupees)

Finally, the value of the Acid Test Ratio Calculator reveals whether a company is capable of meeting its current liabilities.