To calculate a company’s quick ratio, divide the value of its most liquid assets (i.e., those that can be converted to cash in under three months) by the value of its current liabilities (i.e ...

Since the quick ratio doesn’t include inventory in its calculation, it may be a better liquidity indicator in some situations. Similarly, not all companies have stable sales over the course of ...

To use Excel to calculate the current ratio ... The most common liquidity ratios used are the current ratio, quick ratio, and the cash ratio. These ratios are calculated using a company's current ...