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The quick ratio is also fairly easy and straightforward to calculate. It’s relatively easy to understand, especially when comparing a company’s liquidity against a target calculation such as 1.0. The quick ratio can be used to analyze a single company over a period of time or can be used...
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The quick ratio is invaluable for creditors, investors, and executives like CFOs. Creditors use it to gauge a company’s ability to repay loans, while investors gain insights into its short-term financial stability. Internally, you can use the quick ratio to assess liquidity, plan future expendi...