Acid Test Ratio Calculator

Calculate Acid Test Ratio









Formula

The formula to calculate the Acid Test Ratio (ATR) is:

\[ \text{ATR} = \left( \frac{\text{Cash} + \text{Accounts Receivable} + \text{Short Term Investments}}{\text{Current Liabilities}} \right) \]

Where:

Acid Test Ratio Definition

The acid test ratio is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities.

Example Calculation

Let's assume the following values:

Using the formula:

\[ \text{ATR} = \left( \frac{1000 + 2000 + 3000}{3000} \right) \]

Evaluating:

\[ \text{ATR} = 2 \]

The Acid Test Ratio (ATR) is 2.

Acid Test Ratio Conversion Table

Cash Accounts Receivable Short Term Investments Current Liabilities Acid Test Ratio
1000 1000 1000 3000 1.00
1000 1000 2000 3000 1.33
1000 1000 3000 3000 1.67
1000 1000 4000 3000 2.00
1000 1000 5000 3000 2.33
1000 2000 1000 3000 1.33
1000 2000 2000 3000 1.67
1000 2000 3000 3000 2.00
1000 2000 4000 3000 2.33
1000 2000 5000 3000 2.67
1000 3000 1000 3000 1.67
1000 3000 2000 3000 2.00
1000 3000 3000 3000 2.33
1000 3000 4000 3000 2.67
1000 3000 5000 3000 3.00
1000 4000 1000 3000 2.00
1000 4000 2000 3000 2.33
1000 4000 3000 3000 2.67
1000 4000 4000 3000 3.00
1000 4000 5000 3000 3.33
1000 5000 1000 3000 2.33
1000 5000 2000 3000 2.67
1000 5000 3000 3000 3.00
1000 5000 4000 3000 3.33
1000 5000 5000 3000 3.67
2000 1000 1000 3000 1.33
2000 1000 2000 3000 1.67
2000 1000 3000 3000 2.00
2000 1000 4000 3000 2.33
2000 1000 5000 3000 2.67
2000 2000 1000 3000 1.67
2000 2000 2000 3000 2.00
2000 2000 3000 3000 2.33
2000 2000 4000 3000 2.67
2000 2000 5000 3000 3.00
2000 3000 1000 3000 2.00
2000 3000 2000 3000 2.33
2000 3000 3000 3000 2.67
2000 3000 4000 3000 3.00
2000 3000 5000 3000 3.33
2000 4000 1000 3000 2.33
2000 4000 2000 3000 2.67
2000 4000 3000 3000 3.00
2000 4000 4000 3000 3.33
2000 4000 5000 3000 3.67
2000 5000 1000 3000 2.67
2000 5000 2000 3000 3.00
2000 5000 3000 3000 3.33
2000 5000 4000 3000 3.67
2000 5000 5000 3000 4.00
3000 1000 1000 3000 1.67
3000 1000 2000 3000 2.00
3000 1000 3000 3000 2.33
3000 1000 4000 3000 2.67
3000 1000 5000 3000 3.00
3000 2000 1000 3000 2.00
3000 2000 2000 3000 2.33
3000 2000 3000 3000 2.67
3000 2000 4000 3000 3.00
3000 2000 5000 3000 3.33
3000 3000 1000 3000 2.33
3000 3000 2000 3000 2.67
3000 3000 3000 3000 3.00
3000 3000 4000 3000 3.33
3000 3000 5000 3000 3.67
3000 4000 1000 3000 2.67
3000 4000 2000 3000 3.00
3000 4000 3000 3000 3.33
3000 4000 4000 3000 3.67
3000 4000 5000 3000 4.00
3000 5000 1000 3000 3.00
3000 5000 2000 3000 3.33
3000 5000 3000 3000 3.67
3000 5000 4000 3000 4.00
3000 5000 5000 3000 4.33
4000 1000 1000 3000 2.00
4000 1000 2000 3000 2.33
4000 1000 3000 3000 2.67
4000 1000 4000 3000 3.00
4000 1000 5000 3000 3.33
4000 2000 1000 3000 2.33
4000 2000 2000 3000 2.67
4000 2000 3000 3000 3.00
4000 2000 4000 3000 3.33
4000 2000 5000 3000 3.67
4000 3000 1000 3000 2.67
4000 3000 2000 3000 3.00
4000 3000 3000 3000 3.33
4000 3000 4000 3000 3.67
4000 3000 5000 3000 4.00
4000 4000 1000 3000 3.00
4000 4000 2000 3000 3.33
4000 4000 3000 3000 3.67
4000 4000 4000 3000 4.00
4000 4000 5000 3000 4.33
4000 5000 1000 3000 3.33
4000 5000 2000 3000 3.67
4000 5000 3000 3000 4.00
4000 5000 4000 3000 4.33
4000 5000 5000 3000 4.67
5000 1000 1000 3000 2.33
5000 1000 2000 3000 2.67
5000 1000 3000 3000 3.00
5000 1000 4000 3000 3.33
5000 1000 5000 3000 3.67
5000 2000 1000 3000 2.67
5000 2000 2000 3000 3.00
5000 2000 3000 3000 3.33
5000 2000 4000 3000 3.67
5000 2000 5000 3000 4.00
5000 3000 1000 3000 3.00
5000 3000 2000 3000 3.33
5000 3000 3000 3000 3.67
5000 3000 4000 3000 4.00
5000 3000 5000 3000 4.33
5000 4000 1000 3000 3.33
5000 4000 2000 3000 3.67
5000 4000 3000 3000 4.00
5000 4000 4000 3000 4.33
5000 4000 5000 3000 4.67
5000 5000 1000 3000 3.67
5000 5000 2000 3000 4.00
5000 5000 3000 3000 4.33
5000 5000 4000 3000 4.67
5000 5000 5000 3000 5.00
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