Quick ratio

What is Quick ratio?

Quick ratio counts as Current assets minus Inventories, and the result is divided by Current liabilities.

If the denominator is negative, the field value will be empty. It is not calculated for banks.

Formula:

(Total current assets - Inventories) / Total current liabilities

What does Quick ratio mean?

It measures the amount of assets that can be quickly converted into cash with limited effect on the price received in the open market.