# Quick Ratio

### Definition

The quick ratio is an indicator of a companys short-term liquidity. The quick ratio measures a companys ability to meet its short-term obligations with its most liquid assets. The quick ratio is more conservative than the current ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash.

### Formula

$\text{quickratio =}\frac{\text{(cashandequivalents + shortterminvestments + notereceivable + accountsreceivable)}}{\text{totalcurrentliabilities}}$

### Details

 Intrinio Tag quickratio Statements Calculations Templates Industrial Type Liquidity Units Float Historical? Yes Screenable? Yes