Common · Literature
Quick ratio
Company's liquid assets divided by its current liabilities
In finance, the quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures the ability of a company to use near-cash assets (or 'quick' assets) to extinguish or retire current liabilities immediately. It is the ratio between quick assets and current liabilities.
From Wikipedia
In finance, the quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures the ability of a company to use near-cash assets (or 'quick' assets) to extinguish or retire current liabilities immediately. It is the ratio between quick assets and current liabilities. A normal liquid ratio is considered to be 1:1. A company with a quick ratio of less than 1 cannot currently fully pay back its current liabilities. The quick ratio is similar to the current ratio, but it provides a more conservative assessment of the liquidity position of a firm as it excludes inventory, which it does not consider sufficiently liquid.
Text: Wikipédia, CC BY-SA 4.0. ·
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