quick Ratio Formula |
| \( QR \;=\; \dfrac{ C + MS + AR }{ CL } \) |
| Symbol |
| \( QR \) = quick ratio |
| \( AR \) = accounts receivable |
| \( C \) = cash & cash equivalents |
| \( CL \) = current liabilities |
| \( MS \) = marketable securities |
Quick ratio, abbreviated as QR, measures the ability of an individual or business to pay for current liabilities.
quick Ratio Formula |
| \( QR \;=\; \dfrac{ CA - I - PE }{ CL } \) |
| Symbol |
| \( QR \) = quick ratio |
| \( CA \) = current assets |
| \( CL \) = current liabilities |
| \( I \) = inventory |
| \( PE \) = prepaid expenses |