Quick Ratio

The Quick Ratio, also known as the Acid-Test Ratio, is a financial ratio that measures a company's short-term liquidity by comparing its most liquid assets (such as cash, marketable securities, and accounts receivable) to its current liabilities. It is calculated by dividing the sum of a company's cash, marketable securities, and accounts receivable by its current liabilities.

The formula for Quick Ratio is:

Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities

The Quick Ratio provides investors and analysts with information about a company's ability to meet its short-term financial obligations. Generally speaking, a higher Quick Ratio indicates that a company has a stronger ability to pay its bills and operate its business. A healthy Quick Ratio is typically considered to be above 1:1, meaning the company has more liquid assets than current liabilities.

Additional Details

Metric Name	Type	Default Period Type
quick_ratio	fin_metric	FY

Formatting Details

Data Format	Display Format	Unit
float	number	float