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
