Quick Ratio

quick ratio  The quick ratio, sometimes knows as the quick assets ratio or the acid test, is a way to identify and indicate a company's short-term liquidity 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 ideal quick ratio depends on the industry and the business The quick ratio is also called the acid-test ratio because it only considers assets that can be The Quick Ratio Formula Quick Ratio = Current liabilities where Marketable

The ideal quick ratio depends on the industry and the business The quick ratio is also called the acid-test ratio because it only considers assets that can be Quick Ratio Formula The formula for calculating the quick ratio is equal to cash plus accounts receivable, divided by current liabilities