A »The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its liquid assets. It's calculated by dividing the sum of cash, accounts receivable, and marketable securities by current liabilities. For example, if a company has $100 in cash, $200 in receivables, and $300 in current liabilities, its quick ratio is 1, indicating it can meet its short-term obligations.

A »The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. It's calculated as (Current Assets - Inventory) / Current Liabilities. A higher ratio indicates better liquidity, meaning the company can more easily cover its immediate obligations without relying on inventory sales, providing a clearer view of financial health.

A »The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its liquid assets. It is calculated by dividing the sum of cash, accounts receivable, and marketable securities by current liabilities. A higher ratio indicates better liquidity and financial health.

A »The quick ratio, or acid-test ratio, measures a company's ability to cover short-term liabilities with its most liquid assets, excluding inventory. It's calculated as (Current Assets - Inventory) / Current Liabilities. For example, if a company has $50,000 in current assets, $10,000 in inventory, and $25,000 in liabilities, the quick ratio is (50,000 - 10,000) / 25,000 = 1.6, indicating strong liquidity.

A »The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its liquid assets. It's calculated by dividing the sum of cash, accounts receivable, and marketable securities by current liabilities. A higher ratio indicates better liquidity and financial health.

A »The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing current assets minus inventories by current liabilities. A higher quick ratio indicates better financial health, as it suggests the company can more easily cover its liabilities without relying on the sale of inventory, providing insight into immediate financial stability.

A »The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its liquid assets. It's calculated by dividing the sum of cash, accounts receivable, and marketable securities by current liabilities. For example, if a company has $100 in cash, $200 in receivables, and $300 in current liabilities, its quick ratio is 1 ($100 + $200)/$300.

A »The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. It excludes inventories from current assets, focusing on cash, marketable securities, and receivables. A higher quick ratio indicates better financial health, implying the company can quickly cover its short-term obligations without relying on inventory sales. A ratio above 1 is typically considered satisfactory.

A »The quick ratio, also known as the acid-test ratio, is a financial metric that measures a company's ability to meet its short-term obligations using its liquid assets. It is calculated by dividing the sum of cash, accounts receivable, and marketable securities by current liabilities, indicating a company's liquidity and financial health.

A »The quick ratio, or acid-test ratio, measures a company's short-term liquidity by evaluating its ability to cover current liabilities with its most liquid assets. It's calculated as (Current Assets - Inventories) / Current Liabilities. For example, if a company has $50,000 in current assets, $10,000 in inventory, and $25,000 in current liabilities, the quick ratio would be 1.6, indicating good short-term financial health.