The Quick Ratio, also known as an acid test ratio, is a financial measure of a company's ability to pay off its current liabilities without relying on the sale of inventory. It compares only cash and “near cash” assets, such as short-term investments and accounts receivable, to current liabilities. This measure is more stringent than the current ratio because it only considers the most liquid assets.
Learn Quick Ratio with interactive examples and practice exercises in our Performance Metrics module.
This interactive learning module helps you understand Quick Ratio through hands-on practice and real-world examples.