Quick Ratio |
| A financial ratio, sometimes called the acid test, which is similar to the current ratio, but more stringent. It indicates how readily a company can meet its short-term liabilities and is defined as the total of a companys cash plus accounts receivable, plus short-term investments, divided by current liabilities. The higher the number the healthier the companys position and a figure of 1 or higher means a company passes the test. |
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