Equity · Core
Quick Ratio
The quick ratio is cash, marketable securities, and receivables over current liabilities — current ratio without inventory.
Definition
Quick ratio = (cash + marketable securities + receivables) / current liabilities. It asks whether you can meet near-term claims without selling goods. Uncollectible receivables still flatter it.
Why it matters
It is the less naive liquidity screen when inventory is slow or fashionable.
Case
A manufacturer’s current ratio looks fine; the quick ratio is 0.6 because the warehouse is the ‘asset.’ A demand shock makes the distinction expensive.
How to read it
Haircut aged receivables. Then compare to undrawn committed lines — the real liquidity is often off the ratio.
No query has been run yet. Which is tragically normal for most knowledge systems, but we are trying to evolve past decorative databases.