Quick ratio and SRO: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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''Financial ratio analysis - liquidity ratios.''
''Regulation - governance.''


(Current assets <i>less</i> Inventories) / Current liabilities.
Self-Regulatory Organisation


The quick ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.<br />
If the quick ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets (excluding inventories).


 
==See also==
<b>Example</b><br />
* [[Governance]]
Current assets (excluding inventories) = £3m. <br />
* [[NASDAQ]]
Current liabilities = £4m. <br />
* [[New York Stock Exchange]] (NYSE)
 
* [[RPB]]
The Quick ratio is: <br />
* [[Self-regulation]]
= 3 / 4 <br />
* [[Self-regulatory organisation]]
= 0.75.
 
 
The quick ratio is also known as the Acid test or the Acid test ratio.<br />
Inventories are sometimes also known as Stock.
 
 
== See also ==
* [[Balance sheet ratio]]
* [[Current assets]]
* [[Current liabilities]]
* [[Current ratio]]
* [[Inventory]]
* [[Liquidity]]
* [[Liquidity ratio]]
* [[Stock]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Liquidity_management]]

Latest revision as of 13:22, 30 June 2022

Regulation - governance.

Self-Regulatory Organisation


See also