What is Quick Ratio?

quick ratio  Listed for the past two fiscal years, the quick ratio measures a company's balance-sheet liquidity The calculation is current assets minus inventory, divided cash That would be an indication of liquidity risk While traditional analysis suggests that firms maintain a current ratio of 2 or greater , there is a

A quick ratio of 1 or above indicates that the company has sufficient liquid assets to satisfy its short-term obligations An extremely high 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

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 Many analysts consider a quick ratio between 5 to be good A ratio under may indicate potential liquidity issues, while a ratio over