A quick ratio tests a company’s current liquidity and solvency. It is a measure of whether the company can pay its short-term obligations with its cash or cash-like assets on hand. (Short term ...

The quick ratio is a calculation that measures a company’s ability to quickly meet its short-term obligations with its most liquid assets.

The quick ratio is a metric that offers investors and analysts a simple look at how liquid a company is in the short term. Skip to main content. PREMIUM PRODUCTS.

A quick ratio works by providing a relatively fast assessment of a company's financial health.It's easy to calculate manually or in a spreadsheet. A company with a quick ratio of 1 suggests the ...

The acid-test ratio is a measure of a company's liquidity, although it is mostly used when a company is believed to be illiquid. It is a ratio that measures a company's ability to meet its current ...

If your business has quick assets of $20,000 and current liabilities of $25,000 you would divide $20,000 by $25,000 to get the quick ratio of 0.8 -- indicating that you may have trouble paying off ...

Current ratio vs. quick ratio . Another ratio, which is similar to the current ratio and can be used as a liquidity measure, is the quick ratio.