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Quick asset ratio

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    Gabriel O.
    ML
    Gabriel O.

    Quick ratio, Measures the firm's or business organisation's ability to pay off short term obligation without relying on the sales of inventories

    Wendy C.
    AU
    Wendy C.

    Quick asset ratio assets less stock and prepaid expenses and current liabilities less bank overdraft.

    Harrison A.
    AT
    Harrison A.

    Quick assets ratio in the other way can be called Acid ratio,in this regard Inventories are typically the least liquid of firms current assets on which losses are most likely to take play in the event of liquidation .Therefore,this measures the firm's or business organisation's ability to pay off short term obligation without relying on the sales of inventories .

    Harrison A.
    AT
    Harrison A.

    What is assets ?

    Zachary B.
    US
    Zachary B.

    What is a quick asset ratio?

    Caroline Monica M.
    MW
    Caroline Monica M.

    It is important to have quick asset ratio before you are involved in short term loan.

    Diamond T.
    US
    Diamond T.

    What is a quick asset ratio?

    Diamond T.
    US
    Diamond T.

    What is a quick asset ratio?

    Douglas R.
    US
    Douglas R.

    Quick checks on assets help manage forecast.

    Ardian R.
    flag-default-icon
    Ardian R.

    A measure of a company's ability to meet its short-term obligations using its most liquid assets it is calculated by subtracting inventories from current assets and dividing the quantity by its current liabilities a higher acid-test ratio indicates greater short-term financial health.

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