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Re: None

Wednesday, 06/22/2016 5:58:33 PM

Wednesday, June 22, 2016 5:58:33 PM

Post# of 26028
The acid-test ratio is a-strong-indicator-of-whether-a-firm-has-sufficient-short-term-assets-to-cover-its-immediate-liabilities.
Zalemark owes more than four times it's ability to pay it's debts,

Commonly known as the quick ratio, this metric is more robust than the current ratio, also known as the working capital ratio, since it ignores illiquid assets such as inventory. (Zalemark states it's inventory at under $15,000.)

BREAKING DOWN 'Acid-Test Ratio'
Companies with an acid-test ratio of less than 1 do not have the liquid assets to pay their current liabilities and should be treated with caution. If the acid-test ratio is much lower than the current ratio, it means that current assets are highly dependent on the liquidity of it's inventory. (Zalemark states it's inventory to be under $15,000.)