Quick ratio (or acid test ratio) formula
Financial acronyms
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Description of the Quick ratio (or acid test ratio) formula
Formula for the calculation of the quick ratio, also known as the acid-test ratio.
Formula
\[ \text{Quick ratio} = \frac {\text{Cash and cash equivalent}+\text{Marketable securities}+\text{Accounts receivable}} {\text{Current liabilities}} \ \]