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    delarrio's Avatar
    delarrio Posts: 1, Reputation: 1
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    #1

    Feb 26, 2008, 09:35 PM
    Quick ratio
    What is the formula for quick ratio?
    SeanF138's Avatar
    SeanF138 Posts: 11, Reputation: 2
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    #2

    Feb 26, 2008, 09:37 PM
    Quick Ratio= (Current Assets-Inventories)/Current Liabilities
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Feb 27, 2008, 05:51 PM
    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.
    MaggieMouse's Avatar
    MaggieMouse Posts: 226, Reputation: 8
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    #4

    Feb 29, 2008, 08:31 AM
    Here is the link Quick Ratio
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