Quick Ratio Formula + Calculator

quick ratio  The quick ratios formula is calculated by dividing cash on hand and deposits with banks by current liabilities If the resulting figure is less than one, it The quick ratio is an indicator of a company's short term liquidity It measures the ability to pay short-term liabilities with highly liquid assets

The Quick Ratio is helpful in assessing a company's ability to pay off its short-term liabilities to the creditors and evaluate the overall liquidity The quick ratio is a calculation that measures a company's ability to meet its short-term obligations with its most liquid assets

A higher quick ratio means a higher liquidity and a lower risk of insolvency A general rule of thumb is that a quick ratio of 1 or more is considered good, as Quick Ratio = Current Liabilities · Quick Ratio = (Current Assets -