Glossary term
Quick ratio
Quick ratio compares cash, marketable securities, and receivables with current liabilities.
Plain meaning
What quick ratio means
Quick ratio is a liquidity measure that excludes inventory from the asset side of the calculation. In a simplified version, quick assets equal cash plus marketable securities plus accounts receivable.
Formula role
How OpenBook uses it
OpenBook's liquidity calculator divides entered quick assets by current liabilities. The result is unavailable when current liabilities are zero.
Common boundary
Why quick assets need care
The calculator does not assess collectability of receivables, restrictions on cash, marketability of securities, credit terms, or industry context. It uses the amounts entered by the user.