The quick ratio, often referred to as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory. It's calculated as (cash + ...

The quick ratio, also known as the acid-test ratio, measures a company's ability to pay off its current debt. Current debt includes any liabilities coming due within a year, like accounts payable and ...

Sound financial management is necessary in a small business -- to make the most of your assets, you need to properly account for them. The quick ratio is a simple financial ratio that can help you to ...

How can successful business owners determine if their company is financially healthy or heading toward trouble? Financial statements are a source of information but interpreting them on their own can ...

The value of a business depends on so many variables that calculating the market value of a business is more an art than a science. According to Bankrate.com, banks regularly use more than 150 ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

The quick ratio evaluates a company's ability to pay its current obligations using liquid assets. The higher the quick ratio, the better a company's liquidity and financial health. A company with a ...

A quick ratio is a metric used to calculate a company's liquidity and how easily it could pay off its debts. A quick ratio works by providing a relatively fast assessment of a company's financial ...