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Quick ratio - Financial definition

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Translations:      FR  ratio de liquidité réduite (n.m.)     ES  liquidez seca (n.f.) , prueba ácida (n.f.) , prueba de acido (n.f.)     DE  einzugsbedingte Liquidität (n.f.) , Einzugsliquidität (n.f.) , Liquidität 2. Grades (n.f.) , Säure-Test-Verhältnis (n.n.) 
Synonym:  acid test ratio

Concise definition of the term quick ratio

The quick ratio is a liquidity ratio that measures a company’s ability to meet its short-term financial obligations. It is calculated by dividing cash and near-cash equivalents, such as marketable securities, by the firm’s current liabilities.

Comprehensive definition of the term quick ratio

The higher the ratio, the greater the company's liquidity. A ratio of 1 or better is usually considered satisfactory.

Additional information related to this definition

Definitions of related terms

Current liabilities  •  Liquidity

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