For Quick Ratio we have terms and definitions in 3 topics. The topics are Accounting, Finance and Securities.

Quick Ratio (Accounting)

(or Acid Test Ratio) is a more rigorous test than the Current Ratio of short-run solvencythe current ability of a firm to pay its current debts as they come due. This ratio considers only cashmarketable securities (cash equivalents) and accounts receivable because they are considered to be the most liquid forms of current assets. A Quick Ratio less than 1.0 implies "dependency" on inventory and other current assets to liquidate short-term debt.

Quick Ratio (Finance)

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.

Quick Ratio (Securities)

The ratio between quick assets and current liabilities. This is a measure of the liquidity of the company.

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