16 Sep

Quick Ratio

Versino Financial Suite

The quick ratio, also known as 2nd degree liquidity, is a key figure for assessing the short-term solvency of a company. It represents the ratio of the Cash and cash equivalents and current receivables to current liabilities. In contrast to the Current Ratio inventories are excluded from the calculation as they cannot always be converted into cash quickly. A quick ratio of 1 or higher is generally regarded as an indicator of solid short-term liquidity. It is an important indicator of a company's financial stability. Special valuation requirements can be met through add-ons such as the Versino Financial Suite that enable advanced financial analyses.


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