Quick Ratio
January 24, 2014 | | Kris Tabetando | 0 Comment
The quick ratio uses quick assets to measure a company’s liquidity, that is, its ability to convert its assets quickly and easily into cash. In this way, it is possible to assess how quickly it can cover its current liabilities. It is calculated as such:
Quick Ratio = (Cash + Cash equivalents + Marketable Securities + Accounts Receivable)/Current Liabilities
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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