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## < ⎙ 7 Other formulas that you can solve using the same Inputs

Return on capital employed
Return on capital employed=(Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100 GO
Average Collection Period
Average Collection Period =Accounts Receivable/(Sales for Reporting Period/Reporting Period Length) GO
Quick Ratio=(Current Assets-Inventory)/Current Liabilities GO
Quick Ratio
Quick Ratio=(Current Assets-Inventory)/Current Liabilities GO
Working capital
Working Capital=Current Assets-Current Liabilities GO
Current Ratio=Current Assets/Current Liabilities GO
Current Ratio
Current Ratio=Current Assets/Current Liabilities GO

### Acid Test Ratio Formula

Acid Test Ratio=(Cash+Accounts Receivable+Short Term Investments)/Current Liabilities
More formulas
Free Cash Flow GO
Free Cash Flow to Firm GO
Break-Even Point GO
Contribution Margin per Unit GO
Target Inventory Investment GO
Weighted Average Cost of Capital GO
Total Inventory Cost GO
Return on capital employed GO
Solvency Ratio GO
Economic Order Quantity GO
Percentage off GO
Operating Expense Ratio GO
Beginning Inventory GO
Estimate at completion GO
Diluted Earnings per Share GO
Days in Inventory GO
Debt Coverage Ratio GO
Dividends Per Share GO
Estimated Earnings GO
Preferred Stock GO
Retention Ratio GO

## How to Calculate Acid Test Ratio?

Acid Test Ratio calculator uses Acid Test Ratio=(Cash+Accounts Receivable+Short Term Investments)/Current Liabilities to calculate the Acid Test Ratio, The acid test ratio is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities. Acid Test Ratio and is denoted by ATR symbol.

How to calculate Acid Test Ratio using this online calculator? To use this online calculator for Acid Test Ratio, enter Cash (C), Accounts Receivable (AR), Short Term Investments (STI) and Current Liabilities (CL) and hit the calculate button. Here is how the Acid Test Ratio calculation can be explained with given input values -> 2 = (1000+2000+3000)/3000.

### FAQ

What is Acid Test Ratio?
The acid test ratio is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities and is represented as ATR=(C+AR+STI)/CL or Acid Test Ratio=(Cash+Accounts Receivable+Short Term Investments)/Current Liabilities. Cash is the money or currency that can be accessed immediately, Accounts Receivable is the money owed to a company by providing the services, Short Term Investments is the account in the current assets section of a company balance sheet and Current Liabilities are the company debts or obligations that are due within one year.
How to calculate Acid Test Ratio?
The acid test ratio is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities is calculated using Acid Test Ratio=(Cash+Accounts Receivable+Short Term Investments)/Current Liabilities. To calculate Acid Test Ratio, you need Cash (C), Accounts Receivable (AR), Short Term Investments (STI) and Current Liabilities (CL). With our tool, you need to enter the respective value for Cash, Accounts Receivable, Short Term Investments and Current Liabilities and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well. Let Others Know