2024年6月19日 · The quick ratio is calculated by dividing a company’s most liquid assets like cash, cash equivalents, marketable securities, and accounts receivables by total current liabilities.

Quick Ratio = [Current Assets – Inventory – Prepaid expenses] / Current Liabilities. For example, let’s assume a company has: This company has a liquidity ratio of 5.5, which means that it can pay its current liabilities 5.5 times over using its most liquid assets.

The Quick Ratio is a short-term liquidity ratio that compares the value of a company’s cash balance and highly liquid current assets to its near-term obligations.

2024年1月31日 · Formula For Quick Ratio. To calculate the quick ratio, use the following formula: Quick ratio (or acid test ratio) = Quick assets / Current liabilities. Example. The data below was obtained from Fine Trading Company's balance sheet. Current assets: Cash: $90,000; Marketable securities: $65,000; Accounts receivable: $200,000; Prepaid expenses ...

The quick ratio or acid test ratio measures the ability of a company to pay its current liabilities when they come due with only quick assets. Quick assets are current assets that can be converted to cash within 90 days or in the short-term.

The formula for calculating the quick ratio is as follows: quick ratio = (Current Assets – Inventory – Prepaid Expenses) / Current Liabilities. First, we need to identify the company’s current assets, which include cash, cash equivalents, accounts receivable, and any other assets that can be easily converted into cash.

2024年7月26日 · In the case of acid test ratio, the formula is: quick_ratio = (cash_and_cash_equivalent + marketable_securities + accounts_receivable) / current_liabilities. Note that liquid assets are considered here as assets that can be quickly converted to cash at a value close to their book values.

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 accounts receivables by current liabilities.