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HomeRight Arrow TerminologyRight Arrow Quick Ratio

Quick Ratio

The quick ratio is a formula that calculates a company’s ability to pay off its short-term obligations/debts using its most liquid assets (cash, accounts receivable, and marketable securities).

Quick Ratio = Liquid Assets / Current Liabilities

The ideal ratio is 1:1 and above.

Start Trading with Vantage

Access markets including forex, commodities, indices, shares and more, at low cost.

Start Trading with Vantage

Access markets including forex, commodities, indices, shares/stocks and more, at low cost.

Start trading CFD stocks by opening a live account here, or practice trading with virtual currency with a demo account.

You can also sign up for our free, weekly webinars that will break down the current markets as well as discuss potential trade set ups for the week.

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