q show the quick ratio or acid testquick ratio , Financial Econometrics

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q show the quick ratio or acid testquick ratio

Q. Show the Quick ratio or acid test?

Quick ratio = Current assets less inventories/Current liabilities (times)

This ratio measures immediate solvency of a business as it removes inventories out of the equation, which is the item least representing cash, as it needs to be sold. Normal is around 1: 1 however this varies within different industries.

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Financial Econometrics: q show the quick ratio or acid testquick ratio

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