How well can current assets cover current liabilities? Reviewed by Amy Drury The acid-test ratio (ATR), also commonly known as the quick ratio, measures the liquidity of a company by calculating ...

Liquidity ratios determine a company's ability to cover short-term obligations and cash flows, while solvency ratios are ... It is also known as the acid-test ratio. Days sales outstanding ...

The formula is ... out the financial health of a company, and solvency ratios are among them. But there's a similar group of measures called liquidity ratios that can also tell you useful things ...