• Friday, December 01, 2023
businessday logo


Chart of the day: Acid-Test Ratio

Chart of the day: Acid-Test Ratio

The Acid-Test Ratio, also known as the quick ratio, is a liquidity ratio that measures how sufficient a company’s short-term assets are to cover its current liabilities. In other words, the acid-test ratio is a measure of how well a company can satisfy its short-term (current) financial obligations.

The high ratio for Austin LAZ & Company PLC indicates improved liquidity and sound financial standing.

Read also: Corporates revalue insured assets on inflation, FX pressure