The acid-test ratio can be impacted by other factors such as how long it takes a company to collect its accounts receivables, the timing of asset purchases, and how bad-debt allowances are managed.

The quick ratio is also commonly referred to as the “acid test” ratio. This moniker refers to a quick and simple test gold miners used to use to determine whether samples of metal were true ...

Although useful, this metric should be analyzed alongside other financial indicators for a complete assessment of a company's ...