Quick ratio or Acid Test ratio is often considered as an important metric to evaluate the liquidity position of the company.
It is almost similar to the Current Ratio, but incorporates more stringent measures to evaluate the company.
This ratio considers only Quick Assets as against Current Assets in the numerator and Current Liabilities in the denominator.
Out detailed article on Quick Ratio Formula and Interpretation explains the difference between the Current ratio and Quick ratio.
- This template can be used to calculate the Quick Ratio easily.
- The file has the Financials of Walmart Inc to illustrate the calculation.
- You can use the financials of any company and calculate the ratio.
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