The Finance Dictionary

This information provides users with thorough and reliable meanings to all the most common, and even uncommon, financial terms

Financial Terms Beginning With The Letter Q

Quick ratio

The quick ratio is calculated as (cash + marketable securities + receivables) divided by current liabilities. This ratio is an indicator of the ability of the company to meet current debts. The rule of thumb is that a quick ratio under 1, or 100%, requires further scrutiny. The quick ratio is similar to the current ratio, except that the current ratio includes all current assets. Inventory and prepaid expenses are excluded from the quick ratio calculation. Comparing the current ratio to the quick ratio gives an indication of the impact of inventory on the company's working capital.


Same as bid/ask.