Quick Ratio

on . Posted in Project Management Engineering

Quick ratio, abbreviated as QR, measures the ability of an individual or business to pay for current liabilities.

 

quick Ratio Formula

\(\large{ QR =  \frac{ C \;+\; MS \;+\; AR }{ CL }   }\)
Symbol
\(\large{ QR }\) = quick ratio
\(\large{ AR }\) = accounts receivable
\(\large{ C }\) = cash & cash equivalents
\(\large{ CL }\) = current liabilities
\(\large{ MS }\) = marketable securities

 

quick Ratio Formula

\(\large{ QR =  \frac{ CA \;-\; I \;-\; PE }{ CL }   }\)
Symbol
\(\large{ QR }\) = quick ratio
\(\large{ CA }\) = current assets
\(\large{ CL }\) = current liabilities
\(\large{ I }\) = inventory
\(\large{ PE }\) = prepaid expenses

 

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