Quick ratio is a ratio that shows how much cash and other liquid assets a company has to pay off its current liabilities. It helps to measure how quickly a company can settle its short-term debts without selling its inventory or other less liquid assets. The formula for quick ratio is:
Quick ratio = (Cash and Near Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
Where:
- Cash and Near Cash is BS002,
bs_cash_near_cash_item
- Short-Term Investments is BS003,
bs_mkt_sec_other_st_invest
- Accounts Receivable is BS004,
bs_acct_note_rcv
- Current Liabilities is BS050,
bs_cur_liab