Quick Ratio Formula

Most commonly quick ratio value of 1 is considered to be normal It means that the company has as much assets with relatively good liquidity, as its current

Current ratio is calculated by dividing current liabilities with current assets It includes all the prepaid expenses, inventory, cash and cash equivalents, etc

quickbet Example of a quick ratio calculation To better understand the ratio, let's take the above example of the ABC Company In the above balance sheet, the ratio is

quick ratio Understanding the Quick Ratio · The quick ratio evaluates a company's ability to pay its current obligations using liquid assets · The higher