Quick Ratio Calculator
Effortlessly compute Quick Ratio - a key financial metric indicating a company's short-term liquidity. Optimize decisions with our Quick Ratio Calculator.
Result Quick Ratio $0
More Calculators: Return on Investment (ROI), Net Present Value (NPV), Future Value, Savings, Loan Schedule, Early Retirement (FIRE)
Quick Ratio Formula
Quick Ratio = (Cash and Cash Equivalents + Accounts Receivable) / Total Current Liabilities
Where:
- Cash and Cash Equivalents: The sum of cash on hand and highly liquid assets.
- Accounts Receivable: Money owed to the company by its customers for goods or services.
- Total Current Liabilities: The sum of all obligations due within one year.
Quick Ratio Meaning
The Quick Ratio is a measure of a company's ability to meet its short-term obligations with its most liquid assets.
It provides insight into the company's financial health and liquidity position. A higher Quick Ratio indicates a stronger ability to cover short-term liabilities.
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