Examples of 'quick ratio' in a sentence
Meaning of "quick ratio"
Quick ratio, also known as the acid-test ratio, is a financial metric used to assess a company's short-term liquidity. It measures a company's ability to use its most liquid assets (cash, marketable securities, and accounts receivable) to cover its short-term liabilities. A high quick ratio indicates good liquidity and financial health, while a low ratio suggests a potential liquidity problem for the company.
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- Liquid assets divided by current liabilities; a measure of a company's ability to meet its short-term financial obligations.
How to use "quick ratio" in a sentence
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quick ratio
An easy number to use is the quick ratio.
Quick ratio is slightly below the acceptable values.
Identify their quick ratio.
Quick ratio is a better indicator of liquidity than current ratio.
Also known as quick ratio.
The quick ratio also is referred to as the acid test.
Two common liquidity ratios are the current ratio and the quick ratio.
A quick ratio quiz.
UNDP will check the financial accounts to compute the quick ratio QR.
The quick ratio solves in part this problem by excluding inventories from the calculation.
The formula to calculate the quick ratio is:.
Quick ratio and Current ratio are within the established limits.
Generally, a healthy quick ratio should be greater than one.
To get a snapshot of the company 's financial health, keep an eye on the quick ratio.
The Current Ratio and Quick Ratio are examples of liquidity financial metrics.
See also
This explains why, as a convention, they are excluded from the calculation of the Quick Ratio.
The quick ratio calculation formula is as follows,.
The Current Ratio of HubSpot Inc. is 3 while its Quick Ratio stands at 3.
Next up, the quick ratio calculates a worst-case scenario by excluding inventory balances from the assets.
O Recipients ' debt to equity ratio ; current ratio ; quick ratio.
Current Ratio, quick ratio and cash ratio.
Quick ratio most liquid assets / short-term liabilities.
A quick ratio of 0.7 to 1 and above is most ideal for a business.
Quick ratio & current ratio - I like to see them over 1.
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