Quick ratio, Electrical Engineering

Quick ratio

A stringent indicator that determines whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory. It is calculated as

(Current assets- Inventory)/ Current Liabilities

The quick ratio of Nick Holdings is better than that of the Fantastic holdings showing the ability of the company to pay its current liabilities without selling its inventory.

 

Posted Date: 3/14/2013 1:53:26 AM | Location : United States







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