Definition: Quick Ratio is a model for measuring the liquidity of a company. It is calculated by taking all assets which are quickly convertible into cash, and to divide the result by all current liabilities. It specifically excludes inventory. |
More on financial ratios: Cash Ratio, Interest Coverage Ratio, Retention Ratio. MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration. We like to keep things short, and provide links to learn more about your subject. |
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