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Quick ratio |
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Quick ratioA financial ratio which is similar to the current ratio, but more stringent. It is defined as: current assets minus stocks, divided by current liabilities. It shows whether a company would be able to pay its debts if its creditors were hammering at the door AND it had no time to sell any of its stock. If the acid test is 1 or higher, a company passes the test.Similar MatchesNet quick assetsNet quick assetsCash, marketable securities, and accounts receivable less current liabilities. Quick assetsQuick assetsCurrent assets minus inventories. |
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