Quick Ratio
Liquidity without counting inventory
Definition
The quick (acid-test) ratio is (cash + receivables + short-term investments) ÷ current liabilities. It is stricter than the current ratio because inventory may not convert to cash quickly.
(Cash + marketable securities + receivables) ÷ current liabilities
Example
A quick ratio of 0.77 means near-cash assets cover about 77% of near-term bills, common for firms that turn inventory and payables fast.