quick ratio

A good score in the quick ratio test is usually an indication of a healthy business.

Quick ratio is a similar but more demanding way of measuring cash needs.

A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities.

Another example is the quick ratio method, nicknamed "acid test", used by financial analysts to assess the liquidity of a business.

Quick Ratio Current assets less inventories divided by current liabilities.

A manufacturer with stable cash flows may find a lower quick ratio more appropriate than an Internet-based start-up corporation.

He also checks a company's "quick ratio," which compares cash and accounts receivable to current liabilities; again, bigger is better.

You can avoid overtrading by checking your cash needs using financial tests such as gearing, working capital or the quick ratio tests.

Low values for the current or quick ratios (values less than 1) indicate that a firm may have difficulty meeting current obligations.

Also called "quick ratio."

Also standard equipment were black bucket seats, floor shifter, wide oval tires, quick ratio steering and anti-sway bars.

Insurance has been accepted as proof of financial standing and the quick ratio of assets to debts has been dropped.

Notice that very often "Acid test" refers to Cash ratio, instead of Quick ratio:

Read explanations and examples of working capital and quick ratios on the Business Owner's Toolkit website - Opens in a new window.

Acid-test ratio (Quick ratio)

The balance sheet also works out several ratios that bankers and investors expect: current ratio, quick ratio, debt-to-equity ratio and return on investment.

Note that Inventory is excluded from the sum of assets in the Quick Ratio, but included in the Current Ratio.

The chassis has been through the tuning shop, however, with a quicker ratio steering rack, harder suspension bushing and stiffer damping in bounce and rebound.

Front disc brakes remained a $63 extra, but some 400s reportedly were equipped with new variable-assist power steering, which provided a quicker ratio yet firmer control at high speeds.

In contrast, if the business has negotiated fast payment or cash from customers, and long terms from suppliers, it may have a very low Quick Ratio and yet be very healthy.

The GS package included a 3.42 ratio posi rear, variable rate suspension springs, quick ratio steering box, heavy duty sway bars, and a switch-pitch turbo-hydramatic 400 transmission.

In finance, the Acid-test or quick ratio or liquid ratio measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately.

Ducati digital instrumentation, ventilated brake discs, a quick ratio steering rack, and a limited slip differential ensures that power is still applied as long there is some traction available on at least one of the wheels.

The quick ratio is calculated by deducting inventories and prepayments from current assets and then dividing by current liabilities, giving a measure of the ability to meet current liabilities from assets that can be readily sold.

AM/FM stereo radio, in-dash All Weather Air Conditioning, telescopically adjustable steering column, and a Special Purpose Chassis Equipment ("Z17") handling package, consisting of a special performance suspension and quick ratio steering box, were significant new options for 1965.