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A quick ratio of 1 is regarded as ideal and demonstrates good liquidity within the business

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13y ago

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What is ideal quick ratio of a firm?

Quick ratio means


quick ratio?

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 liabilitiesQuick assets = Current assets - Inventory


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1. Quick assets ratio formula Quick asset ratio = quick assets / current liabilities


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What quick ratio indicates?

Quick ratio indicates company's liquidity and ability to meet its financial liabilities. Formula of quick ratio = (Current assets - Inventory)/Current Liabilities


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SDJ Inc has net working capital of 1410 current liabilities of 5810 and inventory of 1315 What is the current ratio what is the quick ratio?

I will not actually work the problem for you, however, I will give you the formula to find the current ratio and the quick ratio. Current Ratio = Current Assets / Current Liabilities The quick Ratio is Quick ratio = (current assets - inventories) / current liabilities Use the numbers you provided above to fill in the blanks and you should get the current ratios and quick ratios with no problem. / = divided by


What is ideal ratio?

There are different ideal ratios for different situations. For example, the ideal ratio of hydrogen to oxygen atoms, in water, is 2:1. The ideal ration for sodium and chlorine atoms for salt is 1:1.