Quick ratios just deduct the inventories from the current assets and then divide it with the current liabilities.
And the reason being, inventories are not that easy to convert into cash and pay off debt. Sure you can do it, but it’ll take more time than say, your accounts receivables.
So, quick ratios, or another name for it is the acid test ratio, measures whether a company can pay off its short term liabilities without selling its inventories.
And, same as current ratios, if its less than one, it means the company cannot pay it off. More than one, they can.
Patreon Link: https://www.patreon.com/user?u=36571443
Смотрите видео Quick Ratio онлайн без регистрации, длительностью часов минут секунд в хорошем качестве. Это видео добавил пользователь FST Study 07 Апрель 2022, не забудьте поделиться им ссылкой с друзьями и знакомыми, на нашем сайте его посмотрели 4,83 раз и оно понравилось 16 людям.