Examlex
Evaluating sources involves
Acid-test Ratio
A financial metric that measures a company's ability to pay off its current liabilities with its quick assets, providing insight into its short-term liquidity without relying on inventory assets.
Current Liabilities
Short-term financial obligations that are due within one year or within the normal operating cycle of the business, whichever is longer.
Inventory
Inventory consists of goods and materials a business holds for the ultimate purpose of sale, production, or utilization.
Payout Ratio
Measures the percentage of earnings distributed in the form of cash dividends; computed by dividing cash dividends declared on common stock by net income.
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