Respuesta :
The quick ratio assesses a company's capacity to satisfy its short-term obligations using its most liquid assets and serves as an indicator of its short-term liquidity position. The quick ratio of the given question is 0.8636.
Quick ratio = (Cash and equivalents + Marketable securities + Accounts receivables) / Current liabilities
= ($2,000 + $0 + $3,700) / $6,600
= 0.8636
What is the Quick ratio?
- The quick ratio gauges a company's ability to cover its short-term obligations without having to sell goods or seek for further funding.
- Compared to the current ratio, which counts all current assets as coverage for current obligations, the quick ratio is seen as a more cautious metric.
- A company's most liquid assets, such as cash, cash equivalents, marketable securities, and accounts receivable, are divided by all of its current liabilities to arrive at the quick ratio.
- Prepaids and inventory are two examples of specific current assets that aren't included since they might be harder to convert to cash or might need hefty discounts to be liquidated.
- The greater a firm's liquidity and financial health, the higher the ratio result; the lower the ratio, the more likely it is that the company will have trouble paying its debts
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