The Quick Ratio (also known as the Acid Test Ratio) is a measure of how well a company can meet a short-term financial obligation.
A high quick ratio means that a company can easily pay a short-term financial obligation. A low quick ratio means they might not be able to pay it.
Quick Ratio (Standard) = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities
Quick Ratio (Alternate) = (Current Assets – Inventory) / Current Liabilities