Quick ratio
AccountingCurrent assets excluding inventory, divided by current liabilities.
In plain terms
The stricter liquidity test — because unsold stock in a downturn is exactly what you cannot convert to cash.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 1 term
Current assets excluding inventory, divided by current liabilities.
The stricter liquidity test — because unsold stock in a downturn is exactly what you cannot convert to cash.