Quick ratio - Indicator of a company"s financial strength (or weakness). Calculated by taking current assets less inventories, divided by current liabilities. This ratio provides information regarding the firms liquidity and ability to meet its obligations. Also called the Acid Test ratio.
A financial ratio which is similar to the current ratio, but more stringent. It is defined as: current assets minus stocks, divided by current liabilities. It shows whether a company would be able to pay its debts if its creditors were hammering at the door AND it had no time to sell any of its stock. If the acid test is 1 or higher, a company passes the test.
Quick ratio : indicator of a company"s financial strength (or weakness). calculated by taking current assets less inventories, divided by current liabilities. this ratio provides information regarding the firms liquidity and ability to meet its obligations. also called the acid test ratio.
a financial ratio which is similar to the current ratio, but more stringent. it is defined as: current assets minus stocks, divided by current liabilities. it shows whether a company would be able to pay its debts if its creditors were hammering at the door and it had no time to sell any of its stock. if the acid test is 1 or higher, a company passes the test.
Quick ratio