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**"quick ratio"****Related Terms:**Acid test ratio, Acid test, Acid-test ratio, Current ratio, Liquidity ratio, Liquidity ratios, Working capital, Net current assets, Net quick assets, Quick assets, Total assets, Capital ratio, Net working capital, Equity ratio, Non-current assets, Current assets, Net assets, Other current assets, Capital employed, Balance sheet equation, Current asset, Accounting equation, Net worth statement, Other assets, Financial ratios, Solvency ratio, Net worth, Balance sheet, Liquid asset, Statement of financial position, Nta, Net tangible assets, Non-current asset, Debt to equity ratio, Tangible net worth, Long-term assets, Cash and cash equivalents, Total asset turnover, Goodwill, Assets, Book value, Roic, Purchase method, Shareholders' equity, Long term assets, Non-liquid asset, Liquid assets, Total debt to total assets, Shareholders' funds, Revaluation reserve

A measure of a companys liquidity and ability to meet its obligations. Quick...

This ratio measures how easily a business can raise cash by selling its most liquid assets to meet its liabilities. It is sometimes called an acid test ratio. It is calculated by subtracting your inventory from your current assets, and then dividing by your current liabilities.

Indicator of a company's financial strength (or weakness). Calculated by taking current assets less inventories, divided by current liabilities. This ratio provides information regarding the firm's liquidity and ability to meet its obligations. Also called the Acid test ratio.

A measure of a company's liquidity, used to evalua... Add a comment

Also called the Acid Test. In analysing shares as investments, the quick ratio is calculated to show the company's ability to pay short-term debts using only those assets that can quickly be converted to cash. Shows company's position assuming inventories cannot be liquidated and assuming the overdraft cannot be repaid immediately. Quick Ratio = (Current assets - Inventories) / (Current Liabilities - Overdraft) = number of times covered

another term for the Acid Test Ratio. (Current Asset minus Stock divided by Current Liabilities).

The ratio of current assets which are readily cashed, to current liabilities. NB There is always scope for argument in the choice of current assets to exclude.

A measure of a company's financial strength in its ability to meet its short-term financial obligations with its liquid assets. Divide the company's current liquid assets by its current liabilities. The quick ratio is similar to the current ratio, but does not include inventory as a current asset. In general, a healthy company should have a quick ratio of at least 1.0. Also known as Acid Test.

A measure of a company's liquidity and of its ability to pay off short-term obligations without having to sell relatively illiquid assets. The ratio compares the company's cash plus accounts receivable (quick assets) to its current liabilities. A ratio of 1:1 (one to one) is considered desirable. See also Acid test. Français: Ratio de liquidité, Rapport de liquidité Español: Prueba ácida

Current assets less inventories divided by current liabilities. Also called "acid ratio." Ratio: Denotes relationships of items within and between financial statements, e.g., current ratio, quick ratio, inventory turnover ratio and debt/net worth ratios.

Also known as the Acid Test Ratio, this ratio is defined as Cash plus Short Term Investments plus Accounts Receivable for the most recent fiscal period divided by the Total Current Liabilities for the same period.

Assesses if a company has enough cash or cash equivalents to meet its current obligations or liabilities. Also called the acid-test ratio. This is a favourite of investors and creditors. This is because in case of an emergency arising due to a fall in business or economic crisis, a good quick ratio shows that the company will have no immediate danger of collapse. The thinking is that there are no conversion costs when cash and cash equivalents are used to pay debts. However, a company could lose while converting other assets like inventories or securities to cash when required in an emergency. Hence, the ratio is an acid test for a company for the possible worst condition. The ratio is easily calculated: first, book value of inventory are deducted from current assets and then divided by current liabilities for that quarter. Ideally the ratio should be around 1, but safer if it is higher.

assets that can quickly be converted into cash divided by current (payable within a year) liabilities. Shows how much cash could be found quickly if a company gets into trouble.

Cash plus marketable securities plus short term receivables, divided by current liabilities; often used as an indication of a company's solvency position.

a calculation of a company's financial strength and liquidity - determined by subtracting inventories from total current assets and dividing by current liabilities.

A ratio expressing the relationship between current assets (without stock) and current liabilities.

Current Ratio minus inventory (see current ratio)--a more stringent metric of liquidity.

Current assets less inventories divided by current liabilities. Also called "acid ratio." (last updated 03/19/2004)

(Cash + Marketable Securities + A/R) / (Current Liabilities).

Liquid assets divided by current liabilities. Measures liquidity. Liquid assets include cash, short-term marketable securities, and accounts receivable.

Current assets, excluding inventory and prepaid expenses, divided by current liabilities. Also known as the acid test ratio. Like the current ratio, the quick ratio is used as a measure of a company's liquidity. It helps estimate a company's ability to meet its current obligations using assets that can easily be converted into cash. Although typical ratios vary from one industry and company size to another, financial authorities recommend that the Quick Ratio should be 1.0 or greater.

Indicator of a company's financial strength or weakness. Subtracting the inventories from the current assets, and then dividing by the current liabilities determine the quick ratio.

ratio of quick assets (liquid) to current liabilities

Ability to convert to cash quickly; current assets less inventory current liabilities

Quick Ratio = (Current Assets - Inventory)/Current Liabilities. The quick ratio shows a company's liquidity and helps determine whether a business can meet its obligations in hard times.

is the sum of Cash and Accounts Receivables divided by Total Current Liabilities. Both the quick ratio and current ratio assess a company's ability to meet short-term obligations. The current ratio measures a company's overall liquidity, while the quick ratio measures liquidity by considering only readily liquid assets, items that can be quickly converted to cash. It should be noted that not one ratio or metric can in itself accurately depict liquidity, which is largely driven by future events, not present conditions.

the quickness in which a business can pay all of its current liabilities (due within 12 months or less) from cash or equivalents on hand.

Liquidity ratio that focuses on the firm's most liquid assets by excluding inventory. Also known as the acid test ratio. Cash, marketable securities, and accounts receivable divided by current liabilities.

A measure of a company's ability to meet its short-term financial obligations with its liquid assets. To determine the quick ratio, the company's liquid current assets are divided by its current liabilities. In general, a healthy company should have a quick ratio of at least 1.0.

Current Assets minus Inventory, divided by Current Liabilities. Also known as the acid test. Back to main document.

One way of determining a company's ability to liquidate debt immediately, this ratio is calculated by dividing a company's most liquid current assets by the company's current liabilities. Also known as acid-test ratio.

Ratio of liquid assets to current liabilities, taken as a measure of liquidity.

A measure of a company's liquidity, used to evaluate creditworthiness. Equals quick assets divided by current liabilities. also called acid-test ratio. See Also ratio, current ratio, cash asset ratio, net quick assets

Quick Ratio is a measure of a company's liquidity, used to evaluate creditworthiness. Quich ratio is calculated as quick assets divided by current liabilities. also called acid-test ratio.

Current assets minus inventories divided by current liabilities. By taking inventories out of the equation, you can check and see if a company has sufficient liquid assets to meet short-term operating needs.

Quickâ€ normally means assets due and available within 90 days. It includes cash, marketable securities and receivables. Quick assets are compared to current liabilities to calculate the quick ratio or acid test ratio.

An indication of a businessâ€™ ability to fund current liabilities with the most liquid current assets. The ratio is defined as: Cash & Equivalents + Net Trade Receivables/Current Liabilities. If the ratio is substantially less than current ratio, then a business has a dependency on non-liquid current assets, such as inventory, to fund current liabilities.

A company's cash and equivalents divided by current liabilities. This is an indication of a company's financial strength.

Also called an acid test ratio, an indicator of company's financial strength by dividing current assets minus inventories by current liabilities.

Related: Acid-test ratio

Cash and equivalents plus receivables divided by current liabilities (i.e., debt) for a given corporation.

An indicator of a company's financial strength. It is calculated as

Refers to the ratio of cash, cash equivalents and accounts receivable relative to the total current liabilities. It is also known as the Acid Test Ratio. This measure of liquidity is more rigorous than the Current Ratio.

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Real Estate (REITs)

quiet title qualifying share

rate lock real interest rate

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