# Liquidity Ratios – Current Ratio and Quick Ratio (Acid Test Ratio)

This finance video tutorial provides a basic introduction into two liquidity ratios – the current ratio and the quick ratio also known as the acid test ratio. The current ratio is equal to the current assets divided by the current liabilities. A current ratio that is greater than 1 means that the current assets are greater in value than the current liabilities. The quick ratio is equal to a company’s liquid assets divided by its current liabilities.

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yet i get the answers wrong wtf

how the fuck y'all have finance stuff on a chemistry channel? LOL

Sir how to calculate liquid ratio when current assets and current liabilities are not given

But here are given working capital, current ratio and stock

Is inventory not a current asst since it can be converted into cash within one year?

Super helpful, thanks.

THANK U!!!

First one form India💕💕💕💕

For us the acid test ratio is cash + temporary investments + net receivables/current liabilities.

Hey!! This is not about testing with acid!!?

Been a fan since grade 10! in university now💯 and still here.

Family of curves DE pleaseeeeee

I bet I'm the first one from England UK to see this

Had to learn this for business 😅

Organic chemistry tutor’s fan hit a like

I am the 4th one to look at this vedio

Hi