quick ratio
(Economics) ratio between the current debts of a company and its current liquid assets (measures the company's ability to fulfill its financial obligations over the short-term) | ||||
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Quick Ratio definition was found in categories: Business & Finance(3) Encyclopedia(1)
Quick Ratio Definition from Business & Finance Dictionaries & Glossaries
| Campbell R. Harvey's Hypertextual Finance Glossary |
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 firm's liquidity and ability to meet its obligations. Also called the Acid Test 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 firm's liquidity and ability to meet its obligations. Also called the Acid Test ratio.
| MONASH Marketing Dictionary |
Quick Ratio
one of three financial ratios commonly used to evaluate a firm's liquidity; calculated by dividing current assets less stock on hand by current liabilities. See Acid-Test Ratio; Current Ratio.
one of three financial ratios commonly used to evaluate a firm's liquidity; calculated by dividing current assets less stock on hand by current liabilities. See Acid-Test Ratio; Current Ratio.
| BASSAM Trade, Real Estate, Mortgage, Fund,Invest, Insurance,& Tax,Terms/abbreviations/defin. |
Quick Ratio
Cash and equivalents plus receivables divided by current liabilities (i.e., debt) for a given corporation.
Cash and equivalents plus receivables divided by current liabilities (i.e., debt) for a given corporation.
Quick Ratio Definition from Encyclopedia Dictionaries & Glossaries
| Wikipedia English - The Free Encyclopedia |
Quick ratio
In finance the Acid-test or quick ratio measures the ability of a company to use its near cash or quick assets to immediately extinguish its current liabilities. Quick assets include those current assets that presumably can be quickly converted to cash at close to their book values. Such items are cash, marketable securities, and some accounts receivable. This ratio indicates a firm's capacity to maintain operations as usual with current cash or near cash reserves in bad periods. As such, this ratio implies a liquidation approach and does not recognize the revolving nature of current assets and liabilities. The ratio compares a company's cash and short-term investments to the financial liabilities the company is expected to incur within a year's time.
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