ACID-TEST RATIO

The measure of absolute liquidity may be obtained only cash and bank balance as well
as
only ready marketable security with liquid liabilities. This is every existing standard of
liquidity and it is satisfaction if the ratio is 1.50:1
𝑨𝒄𝒊𝒅 − 𝑻𝒆𝒔𝒕 𝑹𝒂𝒕𝒊𝒐 =
𝑪. 𝑨 − 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚
𝑪. 𝑳
Interpretation :
Acid-test ratio is near to one in current year that is 1.08 as compare to 1.38 in the
previous
year. Over all the acid-test ratio of last five year is very satisfactory so we can conclude
that
the absolute liquidity of the Om Vaporware Infotech Private Limited Industries Limited is
in
favour.