The asset turnover ratio is a metric for assessing a company's solvency.
Share. The acid-test ratio contrasts the "quick assets" (cash and accounts receivable) and "current liabilities" of a business. It is one of the six fundamental computations used to assess a company's short-term liquidity, or its capacity to pay its debts when they fall due.
The debt ratio, which shows what proportion of assets are funded by liabilities, is the most fundamental measure of solvency.
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