Quick Ratio: Measure Your Company’s Liquidity Fast
Do you know if your company has a quick ratio of 1 or more? It means it can pay off short-term debts with its liquid assets1. The quick ratio, or acid-test ratio, is key for checking your company’s liquidity fast. It doesn’t require selling inventory or getting new loans. This measure quickly shows if your firm can handle its current debts with assets like cash and accounts receivable. Investopedia says checking your company’s liquidity is simple with this ratio. It’s… Read More »Quick Ratio: Measure Your Company’s Liquidity Fast