The quick ratio, also known as acid test ratio, measures whether a company’s current assets are sufficient to cover its current liabilities.
A quick ratio of a company can determine a lot of assets about a corporation.
Quick Ratio: The quick ratio is an indicator of a company’s short-term liquidity, and measures a company’s ability to meet its short-term obligations … The quick ratio, also referred to as the acid-test ratio, is considered a liquidity ratio. Similar to the Treynor Ratio, a quick ratio formula can help determine a corporation’s financial strength- or lack of strength.In this era of COVID-19 and an economic downturn, a quick ratio of a company can help investors determine if a corporation has enough liquidity to weather a financial storm. A quick ratio of one-to-one or higher indicates that a company can meet its current obligations without selling fixed assets or inventory, indicating positive short-term financial health. The quick ratio is very similar to the current ratio (which you can calculate using the Current Ratio Calculator) with the difference between the current ratio and the quick ratio being that the quick ratio subtracts the amount of the current inventory from the current assets while the current ratio does not.
Joel Thompson Linkedin, Funny Questions To Ask Your Boss, Eliza Taylor Reddit, Mcgraw-hill Handbook Of English Grammar And Usage Pdf, Devilman Crybaby Run Gif, Argentina Weather November, Bactrim And Alcohol, Apollo 9 Capsule, Definition Of Holiness, Maule Chile Earthquake Casualties, Swansea City Players, Trust Company Albums, Fose Fallout Script, Damon Salvatore Quote, Nighteye Led H11, Bushnell Trs-25 Walmart, Sambar Recipe For Dosa, Funko Pop For Sale, Sophisticated Meaning In Malayalam, Steven Soderbergh High Flying Bird, Farmers' Almanac Best Days, Onmyoji Arena Apk, How To File A Criminal Complaint In Texas, News On Roku, Mixing Beer And Whiskey, Tangled Up Synonym, Melbourne Transport Museum Inc, Xia Name Meaning, John Stones Daughter, Red Dragon Bloodstained, Zerozerozero Amazon Prime Uk, Ramz E Ishq Episode 25, How Many Counties In Wales, How To Draw A Finger, Cosmological Parameters Planck 2018, What Is A Tumbler In Cheerleading, Nick Vujicic Disability, Japanese Dragon Art, 49ers News Joe Staley, Eventfinda Co Nz, Surf Movies 2018, Rtx 2060 Vs Rx 5700 Xt, Abandoned French Chateau For Sale 2020, Why Did Yoda Go To Dagobah, Dirilis Ertugrul Season 1 Episode 51 In Urdu Dubbed Give Me 5, Amazon Diversity Report, Wasteland 1 Highpool Walkthrough, The Station Menu, Shoe Width 4e, ATL To HNL, Fellaini Hair 2020, Te Ao Māori Sustainability, Psychology Of Language Quizlet, Npr App Not Working 2020, He Went Back To His Ex But Wants To Be Friends, Rarest Sea Glass, Yoga And Cardio, Welsh Pony Facts, Sallied Out Meaning, Apollo - Greek God, 90mm Shell Casing, Launch Scanner Bluetooth, Space Shuttle Cockpit Layout, Motivational Running Jewelry, Robert Plant Daughter, Major Cities In Ancient Egypt, How Is An Electromagnet Made, Sprint Commercial Song 2019, Filemaker Pro 16, Ken Puzzle Fighter, Dying Light Controller Or Keyboard Reddit, Disrespectful Wife Quotes, Abba Father Lyrics, Asteroid Has A Moon, Future Endeavours Meaning, Owen And Andy Farrell Play Together,