The quick ratio is a financial ratio used to gauge a company’s liquidity. The quick ratio is also known as the acid test ratio. The quick ratio compares the total amount of cash and cash equivalents + marketable securities + accounts receivable to the amount of current liabilities. Example ...
When it comes to financial statement analysis, there is no shortage of ratios to interpret the results of your business’s performance. Today, we’re focusing on one of the most essential of those calculations—the quick ratio. Known for its ability to provide insights into a company’s short...
Quick ratio definition The quick ratio measure of a company's ability to meet its short-term obligations using its most liquid assets (near cash or quick assets). Quick assets include those current assets that...
Definition:The quick ratio is a financial liquidity ratio that comparesquick assetsto current liabilities. Quick assets generally include cash, cash equivalents, and accounts receivable. What Does Quick Ratio Mean? Contents[show] The quick ratio is calculated by adding all the quick assets together ...
quick ratio Also found in: Wikipedia. Quick ratio Indicator of a company's financial strength (or weakness). Calculated by taking current assets less inventories, divided by current liabilities. This ratio provides information regarding the firm's liquidity and ability to meet its obligations. ...
Industry Ratios: Quick Ratio Industry ratios can be found at MSN Money under Financial Results: Key Ratios, and Yahoo Finance under Company: Competitors. Notice that Microsoft has the same current ratio as the quick ratio, which indicates that it has very low inventory levels compared to other ...
Quick ratio provides insight into how prepared a business is to convert its liquid assets in case of an emergency. Let’s check what is the quick ratio with example & how to calculate it.
This ratio is a type ofliquidity ratioand is useful not only to internal finance managers but equally useful to creditors, lenders, banks, investors, etc. Normally, the wide use of the current ratio takes place in bank finance, but for businesses with a liquidity crunch, banks may consider ...
quick ratio quick turn Quick Win Quickbooks Quicken Quid quid pro quo quiet enjoyment Quiet Filing quiet period quiet title action Quincunx Quindark Ari Quintal QUIPS Quire quit title suit quitclaim deed Quite Virtual Envelopes Quits Quittance
so that the company can continue to operate. Executive managers, financial analysts, investors, andlendersall rely on the formula as a standard accounting measurement. Fixed or non-current assets, including buildings, property and equipment, are not included in the quick ratio calculation because the...