Definition: Quick Ratio | Tackle Trading: The #1 rated trading education platform

Quick Ratio

The quick ratio is a measure of a company’s short-term liquidity, and ability to meet its short-term debt obligations with its most liquid assets.

The quick ratio excludes inventories from current assets because this metric is only concerned with the most liquid assets,

Quick ratio calculation:

Quick ratio = (current assets – inventories) / current liabilities)

Quick ratio = (cash and equivalents + marketable securities + accounts receivable) / current liabilities

Let us help you start trading!

Our Pro Membership gives you the tools to tackle all your trading obstacles.

Register for the Master Trader Live Workshop and get the First 15 Days on Us

Book a FREE Consultation

Sign up for a free consultation to build your Educational Plan.