quick ratio analyzes whether a company can pay off its short-term obligations using its most liquid assets. the ideal quick ratio for companies is 1.50. quick ratio is calculated as follows:
quick ratio analyzes whether a company can pay off its short-term obligations using its most liquid assets. the ideal quick ratio for companies is 1.50. quick ratio is calculated as follows:
Quick ratio = Quick assets / Current liabilities
Quick assets = Current assets - Inventory
View page
Quick ratio means
View page
1. Quick
assets ratio formula
Quick asset ratio = quick assets / current liabilities
View page
The recommended quick ratio may be 1 to 1 although care needs to
be taken
View page
Quick ratio indicates company's liquidity and ability to meet
its financial liabilities.
Formula of quick ratio = (Current assets - Inventory)/Current
Liabilities