B
Glossary
Quick Ratio
Important — standard screening
What it measures
Stricter current ratio, ignoring inventory. Over 1 healthy, under ~0.7 a concern.
Formula
(Current Assets − Inventory) ÷ Current LiabilitiesBenchmark
> 1x healthy
Glossary
Important — standard screening
Stricter current ratio, ignoring inventory. Over 1 healthy, under ~0.7 a concern.
(Current Assets − Inventory) ÷ Current Liabilities> 1x healthy