Quick Ratio

quick ratio  A higher quick ratio means a higher liquidity and a lower risk of insolvency A general rule of thumb is that a quick ratio of 1 or more is considered good, as Quick Ratio Analysis Definition The quick ratio, defined also as the acid test ratio, reveals a company's ability to meet short-term operating needs by

Quick Ratio = Current Liabilities Suppose the quick ratio for a business is This would indicate that the The ideal standard quick ratio is 1: 1, which means that the company is not in a position to meet its immediate current liabilities; it may lead

A quick ratio of :1 means you have a dollar's worth of easily convertible assets for each dollar of your current liabilities Though acceptable ratios can The quick ratio formula is a vital liquidity ratio that assesses a company's ability to meet short-term debts It is calculated by dividing the