Quick Ratio

Financial Definition of Quick Ratio

Meaning of Quick Ratio

Indicator of a company’s financial strength (or weakness). Calculated by taking current assets less inventories, divided by current liabilities. This ratio provides information regarding the firm’s liquidity and ability to meet its obligations. Also called the Acid Test ratio.

Related Entries of Quick Ratio in the Encyclopedia of Law Project

Browse or run a search for Quick Ratio in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.

Quick Ratio in Historical Law

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Legal Abbreviations and Acronyms

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