What Is The Quick Ratio?
one of the most basic pieces of information investors want to know about a company is its ability to pay upcoming bills. the quick ratio is one popular calculation to help find the answer. essentially, the quick ratio measures a business' most liquid assets in relation to its short-term obligations. here's how to calculate the figure. add the company's cash and equivalents to its short-term investments and its accounts receivable. then divide the sum by the business' current liabilities. this is to find as any bills due within upcoming year. as an example, let's look at lidia's lamp company. the company has $4,000,000 in cash, $3,000,000 in short-term investments and an additional $2,000,000 due in the form of accounts receivable. this number is divided by the company's current liabilities of $6,000,000 ? and a quick ratio of 1.5. generally, companies with a quick ratio, sometimes called an acid test ratio, of less than one can not pay their current liabilities and should be looked at with caution. the quick ratio is seen as a more rigorous indicator of a company's liquidity than the current ratio, because the current ratio includes inventory as part of the numerator thereby increasing the figure. inventory can often take several months or even years to turn into cash, so many financial experts believe it is not a good indicator of a company's ability to pay short-term bills. even the more conservative quick ratio should be looked at with healthy skepticism. for instance, the length of time it takes companies to collect accounts receivable can vary significantly. also, comparing quick ratios should only be done between similar companies in the same industry. consequently, serious investors may want to use the figure simply as a starting point for a more through analysis of the business' financial position.
- quick ratio・・・当座比率→https://ja.wikipedia.org/wiki/%E5%BD%93%E5%BA%A7%E6%AF%94%E7%8E%87
- accounts receivable・・・売掛金
- acid test ratio・・・酸性試験比率
- current ratio・・・流動比率→https://ja.wikipedia.org/wiki/%E6%B5%81%E5%8B%95%E6%AF%94%E7%8E%87