B
Glossary
Quick Ratio
Important — standard screening
What it measures
Like current ratio but excludes inventory. More conservative liquidity test.
Formula
(Current Assets - Inventory) / Current LiabilitiesBenchmark
> 1x healthy
Glossary
Important — standard screening
Like current ratio but excludes inventory. More conservative liquidity test.
(Current Assets - Inventory) / Current Liabilities> 1x healthy