Quick Ratio

January 24, 2014  |     |     |   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


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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