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## What is Quick Assets Ratio?

At First, The Quick Assets Ratio often referred to as: Acid test or Liquid Ratio. We call it Quick Assets Ratio from now on.

The Quick Assets Ratio measures the ability of a company to use its quick assets to payoff its Current Liabilities immediately. A company with a Quick Assets Ratio lower then 1 cannot currently payoff its Current Liabilities.

### How to calculate the Quick Assets Ratio?

Quick Assets Ratio = ( Cash & Equivalents + Total Receivables ) / Total Current Liabilities