What is quick ratio means

Oct 16, The quick ratio is an indicator of a company's short-term liquidity position, and measures a company's ability to meet its short-term obligations. The quick ratio is more conservative than the current ratio because it excludes inventory and other A higher quick ratio means a more liquid current position. The quick ratio is a measure of how well a company can meet its short-term financial liabilities. Also known as the acid-test ratio, it can be calculated as follows.

This company has a liquidity ratio of , which means that it can repay its current liabilities times-over using its most liquid assets. A rate above 1 strongly. In finance, the quick ratio, also known as the acid-test ratio is a type of liquidity ratio which measures the ability of a company to use its near cash or quick assets . 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. The quick ratio compares the total.

The quick ratio or acid test ratio measures the ability of a company to pay its current This means that Carole can pay off all of her current liabilities with quick . Definition: The quick ratio is a financial liquidity ratio that compares quick assets to current liabilities. Quick assets generally include cash, cash equivalents, and. In our example, Company X has a quick ratio of , meaning it has 91 cents available from quick assets to pay every dollar of current liabilities. Is that good or . Heard of the quick ratio but not sure what it means? Bankrate explains.