Acid Test Ratio
- Tags
- finance
Indicates the time lag in turning inventory into cash.
\[ \frac{\mathrm{Current Assets} - \mathrm{Inventory}}{\mathrm{Current Liabilities}} \]
Indicates the time lag in turning inventory into cash.
\[ \frac{\mathrm{Current Assets} - \mathrm{Inventory}}{\mathrm{Current Liabilities}} \]