Understanding Quick Ratio-Definition, Advantages and Limitations

Quick Ratio Explained: a Key Financial Metric quick ratio Learning Outcomes The Quick Ratio, sometimes called the Acid Test Ratio, measures the firm's ability to pay its current liabilities with its cash and other quickbet 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

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