What is Quick Ratio? quick ratio

Quick  Ratio

A ratio for calculating the liquidity of a business. It is calculated as : -

(Current Assets - Stock) ÷ Current Liabilities

This ratio is used to see the solvency of a company. This ratio is also referred to as the "liquid ratio" or "acid-test ratio".
Copyright © STUDY FOR BUSINESS - Blogger Theme by Logics IT & Technology