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D1: Acid Test Ratio

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I selected the acid-test ratio for my sixth item to study as this targets M1 and other forms of assets that are easily convertible to cash. In 2013, Kraft appeared to have been in decent shape to pay off their current liabilities. In 2014, they fell further into the red. While this is not uncommon to have a low acid-test ratios, it indicates that Kraft would have difficulties paying off their liabilities. Something positive for Kraft having a low acid-test ratio is they have invested much of their highly liquid assets back into the company. Shareholders would generally approve of this ratio, as the more money that is being invested in the company (we can see that our inventory turnover and quantity of inventory have both increased in 2014),

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