Current Ratio & Quick Ratio: Use of Liquidity Ratios

quick ratio  The Quick Ratio is helpful in assessing a company's ability to pay off its short-term liabilities to the creditors and evaluate the overall liquidity The quick ratio is a means of measuring the ability of a company to use its cash or current assets to pay off its current liabilities

The quick ratio formula is a vital liquidity ratio that assesses a company's ability to meet short-term debts It is calculated by dividing the Learn about the quick ratio in accounting Study the quick ratio definition, discover how to

Businesses use the Current Ratio to test their ability to release short-term liabilities, while the Quick Ratio measures a company's efficiency The quick ratio formula is a vital liquidity ratio that assesses a company's ability to meet short-term debts It is calculated by dividing the