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Current Ratio
Balance Sheet
Liabilities
Leverage

Quick Ratio
Term category: Finance/Accounting
In 10 words or less: A ratio that measures a company's ability to meet current financial obligations.

Definition: A ratio that measures a company's ability to meet its current liabilities with its liquid assets.

StockJargon Advice: It's important that a company be able to pay their debts and other liabilities.  When using a quick ratio, it's a good rule of thumb that a healthy company should have at least a ratio of 1.0.

To calculate this, divide the liquid assets (cash, accounts receivable, and marketable securities) by the company's current liabilities.

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