Quick Liquidity Ratio


  • A ratio used to determine if a company has the short-term liquidity to make its financial obligations by selling its most liquid assets. Similar to the "current ratio", the quick liquidity ratio excludes inventory from the entity's assets. The quick liquidity ratio is calculated by subtracting the value of company's inventories from its assets and dividing that figure by the company's current liabilities. Also known as "quick assets ratio" or just "quick ratio."

quick redemption ratio, fast liquidity ratio

Related Terms and Acronyms

  • Cash Collateral Definition,
    • The proceeds of cash collected from the sale of liquid assets while in bankruptcy.
  • Current Ratio Definition,
    • A method of determining an entity's liquidity and its ability to cover its current liabilities.
  • Liquid Assets Definition,
    • Cash and other property that can be converted quickly and easily into cash.
  • Liquidity Definition,
    • The ability to convert assets to cash quickly, without significant losses.
  • Quick Assets (QA) Acronym,
    • Assets that can be liquefied quickly without a loss.
  • Ratio Definition,
    • Comparison of two figures used to evaluate business performance, such as debt/equity ratio and return on investment.
  • Short-term Liabilities Definition,
    • Money that you have to pay in less than 12 months, including wages, short-term loans, taxes, credit card balances and long-term loans.
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