Quick Ratio Analysis

quick ratio  The quick ratio is an indicator of a company's short term liquidity It measures the ability to pay short-term liabilities with highly liquid assets  Businesses use the Current Ratio to test their ability to release short-term liabilities, while the Quick Ratio measures a company's efficiency

Many analysts consider a quick ratio between 5 to be good A ratio under may indicate potential liquidity issues, while a ratio over Most commonly quick ratio value of 1 is considered to be normal It means that the company has as much assets with relatively good liquidity, as its current

Learn about the quick ratio in accounting Study the quick ratio definition, discover how to What is a Good Quick Ratio? A quick ratio of suggests that a company is adequately liquid, whereas under indicates the company may have trouble paying