Quick Ratio Definition | Becker

Accounting Dictionary

Quick Ratio

 

  1. 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

Now Leaving Becker.com

You are leaving the Becker.com website. Once you click “continue,” you will be brought to a third-party website. Please be aware, the privacy policy may differ on the third-party website. Adtalem Global Education is not responsible for the security, contents and accuracy of any information provided on the third-party website. Note that the website may still be a third-party website even the format is similar to the Becker.com website.

Continue