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‘Quick Ratio’ refers to the liquidity ratio that assesses the ability of a company to cover its short-term liabilities. This is done by calculating all assets that can be easily converted into cash. The name itself “Quick Ratio” comes from the idea that the only those assets that can be quickly liquidated are used to calculate. Another name of the ‘Quick Ratio’ is ‘Acid Test Ratio’.

Numbers considered as Quick assets are:

Cash

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