Quick Ratio
Quick ratio, abbreviated as QR, measures the ability of an individual or business to pay for current liabilities.
quick Ratio Formula |
QR=C+MS+ARCL |
Symbol |
QR = quick ratio |
AR = accounts receivable |
C = cash & cash equivalents |
CL = current liabilities |
MS = marketable securities |
quick Ratio Formula |
QR=CA−I−PECL |
Symbol |
QR = quick ratio |
CA = current assets |
CL = current liabilities |
I = inventory |
PE = prepaid expenses |