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Simple English definitions for legal terms

acid-test ratio

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A quick definition of acid-test ratio:

The acid-test ratio, also known as the quick-asset ratio, is a way to measure how easily a company can pay off its debts. It looks at the company's quick or liquid assets, such as cash and accounts receivable, and compares them to its current liabilities. This ratio helps investors and analysts understand if a company has enough cash on hand to cover its short-term debts.

A more thorough explanation:

The acid-test ratio, also known as the quick-asset ratio, is a financial ratio that measures a company's ability to pay off its current liabilities using its most liquid assets. These assets include cash, marketable securities, and accounts receivable.

The formula for calculating the acid-test ratio is:

Acid-Test Ratio = (Current Assets - Inventory) / Current Liabilities

For example, if a company has $100,000 in current assets, $20,000 of which is inventory, and $50,000 in current liabilities, the acid-test ratio would be:

($100,000 - $20,000) / $50,000 = 1.6

A ratio of 1 or higher is generally considered good, as it indicates that the company has enough liquid assets to cover its current liabilities. A ratio of less than 1 may indicate that the company may have difficulty paying off its debts.

Overall, the acid-test ratio is an important measure of a company's financial health and liquidity.

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7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
Minus those random R decisions from UMN yesterday though right? I wonder what happened there. I don’t think I’ve seen a school start the season out with anything but As on here
almost all of my apps have been UR for 6 weeks at this point I feel exhausted waiting for them to finish
Irvine is being snobby and wont start any review until end of Nov.
Yeah, it’s tough. I’m distracting myself by playing good video games after work :)
im distracting myself by schizo-scrolling r/lawschoolamissions and every conceivable data point on this godforsaken website
it is not working
Haaa I naturally want to do that too. I’m trying to stop. They need a surgeon general’s warning on this site for perspective law students
i spend more time on here then anything else trying to rationalize that the waves from last year will match waves for this year (they won't) and that the stats of people with the same stats are indicative of my own (they aren't)
There aren't many people in my stat range so I pretty much know every result in my range after being on here for a few years
9:28
congrats on the 172 bruce
go dawgs fr
9:29
roll tide
do we foresee a fordham election day wave today (i'm delusional)
WorthlessAttractiveZombie
9:31
I think so, Jack
9:31
some people hate him. some people love him, but he a real one: https://youtu.be/w5oEqiVQcF4?t=173
9:32
[kevin oleary]
worthless i trust you implicitly you know what it will happen now.
worthless i trust you implicitly you know what it will happen now.
worthless i trust you implicitly you know what it will happen now.
worthless i trust you implicitly you know what it will happen now.
worthless i trust you implicitly you know what it will happen now.
WorthlessAttractiveZombie
9:34
I mean if Fordham doesn't release today I will purposefully get on a train, go to new york, and then take the stinkiest shit inside the admission office's toilet (potentially clogging it and forcing them to get a plumber)
IS IT ONLY ON MY END WHY DID THAT SEND TEN MILLION TIMES
HELLO
WorthlessAttractiveZombie
9:35
it sent a million times lol
WHAT HAPPENED
yeah i thought you were tweaking for a second
i'm so sorry everyone what the actual fuck this website hates me
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