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Acid test ratio |
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Acid test ratioAlso called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities.Acid test ratio Similar MatchesBackward integrationBackward integrationAcquisition by a firm of its suppliers. Current ratioCurrent ratioIndicator of short-term debt-paying ability. Determined by dividing current assets by current liabilities. The higher the ratio, the more liquid the company. Debt to equity ratioDebt to equity ratioNet borrowings of a company divided by shareholders' funds. The ratio shows the amount of financing that is provided by sources other than the shareholders.Net borrowings means the total borrowings of the company from banks, other financial institutions, debenture holders and preference shareholders, less any cash that is readily available and any short term cash holdings.Both figures can be found in a company's balance sheet. The ratio is often multiplied by 100 and expressed as a percentage. The higher the percentage, the more risky for lenders to the company. Most lenders like the percentage to be below 50%. If it is above 100%, the company is said to be highly geared. Constant ratio planConstant ratio planMaintaining a predetermined ratio between stock and fixed income investments through regular adjustments of distribution of funds into different investments. See: formula investing. Member short sale ratioMember short sale ratioThe total shares sold short by NYSE members divided by total short sales, which is used to analyze market expectations and bullish or bearish trends. Further SuggestionsCommon stock ratiosPEG Ratio Long term debt ratio Edge Act corporation Transnational corporation Organization for Economic Cooperation and Development (OECD) Operationally efficient market Cash flow coverage ratio Expiration time Co-registration National Credit Union Administration Fibonacci ratio Options Clearing Corporation (OCC) Integration Section 352 of the Income and Corporation Taxes Act 1988 Market penetration or share Ratio writer Shell corporation Mortgage code arbitration scheme Proration Customary payout ratios Market book ratio Economies of vertical integration Loan toValue Ratio exit P/E ratio |
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