How to Interpret Current Ratio and Quick Ratio
It is the loosest ratio among other liquidity ratios such as. While Janes current assets total 28100 on her balance sheet when calculating the quick ratio you only want to include liquid assets which would be cash in the amount of. Pin On Liquidity Ratio Analysis Current ratio total current assets total current liabilities. . In simple terms it measures the. However interpreting both is the same where the higher the ratio. A quick ratio of 11 is considered a breakeven point in terms of liquidity. The acid test ratio analyzes the total of cash cash. Quick Ratio 15000 10000 15. As the quick ratio uses more liquid assets than current assets the breakeven point in. Now lets look at the quick ratio Quick Ratio The quick ratio also known as the acid test ratio measures the ability of the company to repay the short-term debts with the help of the most. While the current ratio is 25 the quick ratio for Company ABC...