What is a Quick Ratio?

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Quick Ratio = Quick Assets / Current Liabilities

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Quick assets are ones that could be turned into cash in a very short amount of time.

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What are the Current liabilities?

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Current Liabilities Formula

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What is a Quick Ratio?

The quick ratio is used to determine a company's short-term liquidity, or its ability to generate cash to cover dues over the next 90 days.

Quick Ratio = Quick Assets / Current Liabilities

Quick ratio formula

So, What is Quick Assets?

Quick assets are ones that could be turned into cash in a very short amount of time.

What are Quick Assets?

Quick Assets = Current Assets – Inventories

What are the Current liabilities?

Short-term liabilities is another name for current liabilities. These are debts that should be fulfilled within the next year.

Current Liabilities Formula