Quick Ratio: How to Calculate & Examples

quick ratio  Quick Ratio Definition: The Quick Ratio equals a company's divided by its Current Liabilities It indicates Most commonly quick ratio value of 1 is considered to be normal It means that the company has as much assets with relatively good liquidity, as its current

The quick ratio measures a company's ability to pay its current liabilities by readily converting some of its current assets into cash  Quick ratio only uses quick assets and excludes any assets that can't be liquidated and converted into cash in 90 days or less The current ratio considers all

The Quick Ratio, also known as the acid-test ratio, is a solvency metric used to determine a firm's ability to pay down current liabilities with its cash, short The quick ratio is a formula and financial metric determining how well a company can pay off its current debts