Quick ratio - Revision history

imported>Doug Williamson: Add header.

2019-02-03T19:09:55Z

Add header.

← Older revision		Revision as of 19:09, 3 February 2019
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			''Financial ratio analysis - liquidity ratios.''

	(Current assets <i>less</i> Inventories) / Current liabilities.		(Current assets <i>less</i> Inventories) / Current liabilities.

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	* [[Inventory]]		* [[Inventory]]
	* [[Liquidity]]		* [[Liquidity]]
			* [[Liquidity ratio]]
	* [[Stock]]		* [[Stock]]

			[[Category:Accounting,_tax_and_regulation]]
			[[Category:The_business_context]]
	[[Category:Liquidity_management]]		[[Category:Liquidity_management]]

2018-08-21T14:09:46Z

Update links.

← Older revision		Revision as of 14:09, 21 August 2018
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	== See also ==		== See also ==
	* [[Balance sheet ratio]]		* [[Balance sheet ratio]]
			* [[Current assets]]
			* [[Current liabilities]]
	* [[Current ratio]]		* [[Current ratio]]
			* [[Inventory]]
	* [[Liquidity]]		* [[Liquidity]]
			* [[Stock]]

	[[Category:Liquidity_management]]		[[Category:Liquidity_management]]

2017-02-10T10:27:19Z

Add link to Balance sheet ratio page.

← Older revision		Revision as of 10:27, 10 February 2017
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	== See also ==		== See also ==
			* [[Balance sheet ratio]]
	* [[Current ratio]]		* [[Current ratio]]
	* [[Liquidity]]		* [[Liquidity]]

	[[Category:Liquidity_management]]		[[Category:Liquidity_management]]

2016-05-13T15:30:52Z

Layout.

← Older revision		Revision as of 15:30, 13 May 2016
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	The quick ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.<br />		The quick ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.<br />
	If the quick ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets (excluding inventories).		If the quick ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets (excluding inventories).


	<b>Example</b><br />		<b>Example</b><br />
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	= 3 / 4 <br />		= 3 / 4 <br />
	= 0.75.		= 0.75.


	The quick ratio is also known as the Acid test or the Acid test ratio.<br />		The quick ratio is also known as the Acid test or the Acid test ratio.<br />

2016-01-15T19:41:17Z

← Older revision		Revision as of 19:41, 15 January 2016
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	Current assets (excluding inventories) = £3m. <br />		Current assets (excluding inventories) = £3m. <br />
	Current liabilities = £4m. <br />		Current liabilities = £4m. <br />

	The Quick ratio is: <br />		The Quick ratio is: <br />
	= 3 / 4 <br />		= 3 / 4 <br />

2015-05-30T10:42:46Z

Added 1 line space before see also

← Older revision		Revision as of 10:42, 30 May 2015
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	The quick ratio is also known as the Acid test or the Acid test ratio.<br />		The quick ratio is also known as the Acid test or the Acid test ratio.<br />
	Inventories are sometimes also known as Stock.		Inventories are sometimes also known as Stock.


	== See also ==		== See also ==

2015-05-29T16:18:16Z

← Older revision		Revision as of 16:18, 29 May 2015
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	(Current assets ''less~~'' Stock~~) / Current liabilities.		(Current assets <i>less</i> Inventories) / Current liabilities.

	The quick ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.		The quick ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.<br />
			If the quick ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets (excluding inventories).
	If the quick ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets (excluding ~~stock).~~


	~~'''Example'''~~

	~~Current assets (excluding stock~~) ~~= £3m.~~

	~~Current liabilities = £4m~~.

	~~The Quick ratio is:~~

	~~= 3 / 4~~

			<b>Example</b><br />
			Current assets (excluding inventories) = £3m. <br />
			Current liabilities = £4m. <br />
			The Quick ratio is: <br />
			= 3 / 4 <br />
	= 0.75.		= 0.75.

			The quick ratio is also known as the Acid test or the Acid test ratio.<br />
	~~Also~~ known as the Acid test or the Acid test ratio.		Inventories are sometimes also known as Stock.


	== See also ==		== See also ==

2015-03-18T12:04:49Z

Standardise appearance of page

← Older revision		Revision as of 12:04, 18 March 2015
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	[Current assets ''less'' Stock~~] ÷~~ Current liabilities.		(Current assets ''less'' Stock) / Current liabilities.

	The quick ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.		The quick ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.
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	~~For example,~~		'''Example'''

	~~if current~~ assets (excluding stock) ~~are~~ £3m		Current assets (excluding stock) = £3m.

	~~and current~~ liabilities ~~are~~ £4m,		Current liabilities = £4m.

	~~the~~ Quick ratio = 3/4		The Quick ratio is:

			= 3 / 4

	= 0.75.		= 0.75.

2014-11-26T14:41:30Z

Make branding consistent

← Older revision		Revision as of 14:41, 26 November 2014
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	If the quick ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets (excluding stock).		If the quick ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets (excluding stock).

	For example, if current assets (excluding stock) are £3m and current liabilities are £4m, the Quick ratio = 3/4 = 0.75.
			For example,

			if current assets (excluding stock) are £3m

			and current liabilities are £4m,

			the Quick ratio = 3/4

			= 0.75.


	Also known as the Acid test or the Acid test ratio.		Also known as the Acid test or the Acid test ratio.


	== See also ==		== See also ==
	* [[Current ratio]]		* [[Current ratio]]
	* [[Liquidity]]		* [[Liquidity]]

			[[Category:Liquidity_management]]

2013-03-28T15:59:40Z

Amended as per Glossary for Wiki alignment

← Older revision		Revision as of 15:59, 28 March 2013
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	The quick ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.		The quick ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.

	If the quick ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets (excluding stock).		If the quick ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets (excluding stock).

			For example, if current assets (excluding stock) are £3m and current liabilities are £4m, the Quick ratio = 3/4 = 0.75.

	Also known as the Acid test or the Acid test ratio.		Also known as the Acid test or the Acid test ratio.
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	* [[Current ratio]]		* [[Current ratio]]
	* [[Liquidity]]		* [[Liquidity]]