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Quick ratio

Financial Ratios[None]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

Formula

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Tags

cash, asset, Liability, test

Metadata

Category: Financial Ratios · Added: May 17, 2026

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