Overview
Quick ratio measures liquidity excluding inventory.
Formula
Quick Ratio = (Cash + Receivables + Marketable Securities) / Current Liabilities
How to Interpret
High Value
A high quick ratio can indicate readily available short-term resources.
Low Value
A low quick ratio may expose reliance on inventory conversion.
Where It Is Used
Interpreting Quick Ratio with company-specific distribution ranges is usually more stable than relying only on sector average.