Video: Quick Ratio in Accounting

quick ratio To calculate the quick ratio in seconds, you can subtract inventory and current prepaid assets from current assets, and divide that difference by current

A company with a quick ratio of 1 suggests the company can pay off its debts in 90 days or less if needed When the score dips below 1, the company does not quick ratio Due to its stricter guidelines, the quick ratio is more conservative It excludes inventory from the equation The other major difference between the two is