Quick Ratio

If you want to know what is quick ratio, remember that it refers to the liquidity of a business in the short term about servicing its liabilities at present without requiring a loan or selling off its inventory or stock. It is an important indicator of the financial health of a business. It only considers the most liquid assets and cash reserves of a business. You can better understand the quick ratio meaning by seeing how it is calculated: 

Quick ratio = Liquid assets like cash + Other equivalents + Accounts receivables / Current liabilities

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