Quick ratio calculator—Acid test ratio
quick ratio QUICK RATIO definition: → acid test ratio Learn more CR = Current Ratio • QR = Quick Ratio • Cash = Cash Ratio • NWC = • NI = • LiI = Liquid Index • StI = Status Index • SuI = Survival Index • RiskScroing
What is Quick ratio?Quick ratio counts as Current assets minus Inventories, and the result is divided by Current the denominator is neg The Quick Ratio, also called the Acid-Test Ratio, is an indicator for assessing a firm's immediate liquidity status This metric gauges a firm's capacity to
Similar to the current ratio, the quick ratio provides insights into a company's liquidity position A quick ratio greater than 1 indicates that 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