A quick ratio tests a company’s current liquidity and solvency. It is a measure of whether the company can pay its short-term obligations with its cash or cash-like assets on hand. (Short term ...

How Assets Help You Build Wealth Assets represent a fairly simple concept. Every asset you acquire, and every time those assets increase in value, your net worth grows.

Since the quick ratio doesn’t take all assets into account, a ratio of slightly below 1 (e.g., 0.92) isn’t necessarily cause for alarm, as less-liquid assets can be sold, or additional ...

Quick Ratio = 150,000 / 100,000 = 1.5 A Quick Ratio of 1.5 means that ABC Corp. has $1.50 in liquid assets for every $1 of current liabilities, indicating a strong liquidity position.

A quick ratio is a valuable tool for investors who want an immediate snapshot of a company's financial health before they invest in it. Businesses that have more assets than debts can pay their ...