Quick Ratio: Definition, Formula, and Examples

Video: Quick Ratio in Accounting quick ratio

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

quickbet Considered the more conservative ratio, the quick ratio only considers assets that can be quickly converted to cash, whereas the current ratio A Quick Ratio less than one indicates potential liquidity issues, suggesting the need for the firm to increase its liquid assets to cover short- Cash $ 20,000 $10,000 Accounts receivable 100,000 70,000 Inventory 70,000 80,000 Other 20,000 20,000 **42 McKeon Company's debt-to-total-asset ratio at 12

ผลบอลทุกลีกวันนี้ What is a Good Quick Ratio? A quick ratio of suggests that a company is adequately liquid, whereas under indicates the company may have trouble paying