The quick ratio, also known as the acid test ratio, is used to measure the short term liquidity of a company. It basically measures the ability of a company to pay its current liabilities based on available cash, short term investments, and receivables. Both Wal-Mart and target are multimillion dollars corporations and this has been widely known by many. Based on information taken from both the companies' financial statements, which can be located on their websites, a quick ratio was performed to measure the liquidity of both the companies for the year 2004. …
