|
|
Acid test ratio |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
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 MatchesPrice to sales ratioPrice to sales ratioA financial ratio calculated as: current share price divided by sales per share. Put another way, market capitalisation divided by total sales.A low ratio of market cap to sales is seen as exciting by some investors. Why? Because a small increase in the company's profit margins will thanks to the high level of sales, leverage into large increases earnings per share.However, just because a company has a low PSR does not necessarily make it an attractive investment. For example, the company may operate in very low margin industries such as contracting or construction which make it difficult for margins to improve. MigrationMigrationThe permanent relocation of people from one country to another. See emigration, immigration. Operationally efficient marketOperationally efficient marketMarket in which investors can obtain transactions services that reflect the true costs associated with furnishing those services. Also called an internally efficient market. Ratio Calendar SpreadRatio Calendar SpreadSelling more near-term options than longer-term ones purchased, all with the same strike; either puts or calls. Duration matching strategyDuration matching strategyAn immunization technique that matches immunization duration with the duration of the liabilities. Further SuggestionsFunds From Operations (FFO)Economic integration National Securities Clearing Corporation (NSCC) Loan toValue Ratio National Credit Union Administration Negative duration Times interest earned ratio D Declaration Of Trust Target Leverage Ratio Price sales ratio Wage-rental ratio Sequestration, Writ Of payout ratio Economies of vertical integration Earnings price ratio Ratio Calendar Combination Earnings retention ratio Time until expiration Instinet (Institutional Networks Corporation) Receivables turnover ratio Federal Agricultural Mortgage Corporation (Farmer Mac) National Association of Investors Corporation Specialists short sale ratio Odd lot short sale ratio Ration foreign exchange |
|
|
|