Quick Ratio – Definition, Explanation and Proper Use
The quick ratio is a formula used in business to identify the ability of a business to pay its current liabilities. It is also known as the ‘Acid Test’ formula (ratio).
Business Ratios
Business ratios are tools used to compare similar businesses within the same industry. They are financial metrics evaluating market valuation, performance, liquidity, leverage and activity. In general, business ratios are an excellent tool to value stocks.