The quick ratio formula includes cash and equivalents, marketable securities, and accounts receivable and compares those figures to a company's current liabilities. Here is the formula: ...

Learn about the quick ratio, a crucial liquidity metric that helps investors assess a company's ability to meet short-term obligations. Learn how to calculate and interpret it for smarter ...

Investors evaluate a company's ability to satisfy short-term debts with liquid assets using the quick ratio. Find out how to calculate it, interpret it, and more.

The acid-test ratio (ATR), also commonly known as the quick ratio, measures the liquidity of a company by calculating how well current assets can cover current liabilities. Put simply, it ...

Quick ratio = ($20 - $10) / $25 = 0.20 Relative to Company Y, Company X has a high degree of liquidity with the ability to cover its current liabilities three times over.