# quick ratio

## Definition

For example, if current assets equal $15,000,000, current inventory equals $6,000,000, and current liabilities equal $3,000,000, then quick ratio amounts to: ($15,000,000 - $6,000,000)/$3,000,000 = 3.

## Use quick ratio in a sentence

“ If you want to figure out the best way to proceed for the future you first will need to figure out the quick ratio. ”

“ I took a quick ratio to see if we had the ability to meet our obligations and I was right in doing so. ”

“ You should try and find a good quick ratio that will let you get your hands on your cash when you need it. ”