Quick Ratio
What is it? A measure of a companys ability to meet its short-term financial obligations with its liquid assets. To determine the quick ratio, the companys liquid current assets (cash, accounts receivable, marketable securities) is divided by its current liabilities. The quick ratio is similar to the current ratio, but does not include inventory as a current asset. In general, a healthy company should have a quick ratio of at least 1.0.Added By: Brendan
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