Quick Ratio
Also called: acid test ratio, acid-test
The quick ratio is the current ratio with inventory stripped out, on the view that stock is the current asset least likely to convert to cash quickly. It's the sharper liquidity test for retailers and manufacturers, where inventory dominates the balance sheet. A company with a healthy current ratio and a poor quick ratio is one whose solvency depends on selling what it's holding.
Formula
Quick ratio = (Current assets − Inventory) ÷ Current liabilities
Where this is taught
Definitions are the trailer. These free levels turn Quick Ratio into something you play — one bite-size lesson, with worked examples, a quiz and XP.