May 10, 2025 · The quick ratio is calculated by dividing a company’s most liquid assets like cash, cash equivalents, marketable securities, and accounts receivables by its total current liabilities.

Apr 18, 2024 · Quick Ratio Formula The formula for calculating the quick ratio is equal to cash plus accounts receivable, divided by current liabilities.

The quick ratio formula is a vital liquidity ratio that assesses a company's ability to meet short-term debts. It is calculated by dividing the sum of cash, cash equivalents, marketable securities, and …

Sep 8, 2022 · The quick ratio is one way to measure a business’s ability to quickly convert short-term assets into cash. Also known as the “acid test ratio,” the quick ratio is an indicator of a company’s …

Jul 15, 2024 · It is a liquidity ratio used by a company’s stakeholders, investors, and lenders and takes a company’s quick assets—which are current assets minus inventory and long-term receivables—and …

Nov 4, 2025 · Learn the Quick Ratio, how it works, formula, real examples, and how to calculate it from any balance sheet. Perfect for beginners or anyone

The standard formula for calculating the quick ratio stands as follows: Quick Ratio = (Cash and Equivalents + Marketable Securities + Accounts Receivable) ÷ Current Liabilities. There is also an …

Dec 2, 2025 · Two formulas calculate the Quick Ratio, both producing identical results: Quick Ratio = (Cash + Cash Equivalents + Marketable Securities + Accounts Receivable) ÷ Current Liabilities. This …

Quick ratio explained with formula, steps, and examples. Learn what a good quick ratio is, how to calculate it, and how it compares with the current ratio.

Nov 23, 2023 · Let us now calculate the Quick ratio with a simple example. Consider a company XYZ has the following Current Assets and current liabilities. Therefore, The quick ratio pertaining to …