The quick ratio compares the value of a company's most liquid assets to the value of its current liabilities so investors can get a sense of how well it can cover its expenses in the short term.

The formula for the cash ratio is: cash ratio = (cash + cash equivalents) / current liabilities The quick ratio is the next level of a liquidity ratio. It adds a company's accounts receivable to ...

One of the more commonly used ratio is the acid-test ratio, or quick ratio. Image source: Getty Images. The acid-test ratio is a version of the current ratio, but it only includes the most liquid ...

The quick ratio is calculated by dividing a company's cash and accounts receivable by its current liabilities. This ratio is similar to the current ratio, but the quick ratio limits the type of ...