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-   -   Quick ratio (https://www.askmehelpdesk.com/showthread.php?t=188727)

  • Feb 26, 2008, 09:35 PM
    delarrio
    Quick ratio
    What is the formula for quick ratio?
  • Feb 26, 2008, 09:37 PM
    SeanF138
    Quick Ratio= (Current Assets-Inventories)/Current Liabilities
  • Feb 27, 2008, 05:51 PM
    morgaine300
    Not correct.

    Quick assets are cash, marketable securities & accounts receivables. There could be any number of current assets besides inventory that are not included in this equation. If subtracting out inventory works, then it's just a coincidence. Even for beginning level problems, they'll many times have at least some prepaid expenses that aren't included.

    Best to just follow the rule of what is included and not worry about what isn't. So that's cash, marketable securities and A/R.
  • Feb 29, 2008, 08:31 AM
    MaggieMouse
    Here is the link Quick Ratio

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