FPGEE 2026 Practice Exam for NABP – The Complete All-in-One Guide to Exam Success!

The acid test ratio, also known as the quick ratio, is specifically designed to measure a company's liquidity, which refers to its ability to cover short-term obligations with its most liquid assets. This ratio provides insight into the financial health of a pharmacy by comparing its most liquid assets—cash, cash equivalents, and receivables—to its current liabilities. A higher acid test ratio indicates that the pharmacy can more easily cover its liabilities without relying on the sale of inventory, which may not be as readily convertible to cash.

In contrast, the other options focus on different financial metrics that do not directly measure liquidity. The net profit to net sales ratio assesses profitability rather than liquidity, the net sales to net working capital ratio provides a perspective on how sales relate to available capital but does not reflect immediate liquidity, and the inventory turnover rate indicates how efficiently inventory is managed without directly conveying the ability to meet short-term financial obligations. Therefore, the acid test ratio is the most appropriate metric for assessing pharmacy liquidity.