Quick Ratio Formula. Quick ratio = 5+3+2 5 = 2.0 the quick ratio in this example is equal to 2. Quick ratio = (cash + marketable securities + accounts receivable + other current assets) / total current liabilities.
A quick ratio is calculated with the following formula: What is a good quick ratio? The formula for the quick ratio is:
Quick Ratio Definition
The quick ratio formula is as follows. Quick ratio formula quick ratio = (cash & equivalents + accounts receivable) / current liabilities for example, suppose a company has $100 million in cash and $20 million in a/r. Quick ratio = 5+3+2 5 = 2.0 the quick ratio in this example is equal to 2. The quick ratio formula is one of several accounting formulas small business owners can use to understand their company’s liquidity position.
