Quick Ratio Definition | Becker
Accounting Dictionary
Quick Ratio
- The quick ratio is (cash and cash equivalents plus short-term marketable securities plus receivables [net]) divided by current liabilities. See also current ratio and working capital. A ratio that measures an entity's ability to pay off short-term obligations using the most liquid current assets (excluding inventory). (Also called acid-test ratio.)
Related Terms:
Current Ratio [FARBAR]Working Capital [FARBAR]Back to Dictionary