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Quick Ratio

What is the definition of Quick Ratio?

The Quick Ratio, also known as the Acid Test Ratio, is defined as Total Current Assets minus Total Inventory divided by the Total Current Liabilities for the same period.


Stockopedia explains Quick Ratio...

The quick ratio is a liquidiity measure which assesses the the ability of a company to use its near cash or quick assets to cover all its near-term liabilities at once. A healthy quick ratio would be above one.