Dictionary > Finance > Q > Quick (Acid Test) Ratio

# Finance Dictionary - Q Terms

# Quick (Acid Test) Ratio

A measure of liquidity similar to the current ratio except for exclusion of inventories in the numerator. The formula is: Cash þ Receivables þ Marketable Securities Current Liabilities : The quick ratio is a better measure of liquidity than the current ratio for firms whose inventory is not readily convertible into cash.