Quick Ratio: How to Calculate & Examples

quick ratio  Quick Ratio Formula Accounting · Quick Ratio = Cash & Equivalents + Accounts Receivable Current Liabilities · Does the company have ratio and the quick ratio The current ratio is the ratio of current assets to current liabilities: Current ratio = Current assets Current liabilities current

To find your company's quick ratio, first add together your cash, accounts receivable, and marketable securities to find your quick assets Add The quick ratio is an indicator of a company's short term liquidity It measures the ability to pay short-term liabilities with highly liquid assets

What Is a Good Quick Ratio? For many industries, the ideal quick ratio falls anywhere from to Anything below indicates a company Definition of Quick Ratio 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