Metrics & KPIsQuick ratio
Definition
The <a href="http://en.wikipedia.org/wiki/Quick_ratio">Acid-test or quick ratio or liquid ratio</a> measures the ability of a company to use its near cash or quick assets to immediately extinguish its current liabilities. A measure of how quickly a company's assets can be turned in cash. Current Assets - Inventories / Current Liabilities
Tags
cash, asset, Liability, test