Because the ratio came out above 1, it looks like Apple was in a healthy position to cover all of its upcoming liabilities as of late March 2021. The current and quick ratios are extremely similar.

Quick Ratio vs. Current Ratio The quick ratio is more conservative ... while a lower ratio could mean it might have a hard time covering its immediate expenses. The quick ratio looks at only ...

The quick ratio formula includes cash and equivalents, marketable securities, and accounts receivable and compares those figures to a company's current liabilities. Here is the formula ...

The quick ratio measures a company's liquidity ... or sometimes previous / next navigation options. A very high current ratio could mean that a company has substantial assets to cover its liabilities.

The commonly used acid-test ratio, or quick ratio, compares a company ... Accounting Tools. "Current Ratio Definition." ...

Current liabilities = $22 million Quick ratio = $55 million / $22 million = $2.5 million. The company's quick ratio is 2.5, meaning it has more than enough capital to cover its short-term debts.

A quick ratio tests a company’s current liquidity and solvency. It is a measure of whether the company can pay its short-term obligations with its cash or cash-like assets on hand. (Short term ...

A current ratio of more than 3, meaning the company has three times more liquidity than it needs, could certainly be an indication that capital is being misused or inefficiently allocated.

A quick ratio below industry standard means that your company has a relatively lower liquidity position than its competitors on one of the three common liquidity ratios used by companies.

The higher the ratio, the better. A quick ratio of 1.5, for example, would mean that the company's quick assets are one and a half times its current liabilities. A ratio of 0.5, on the other hand ...

The quick ratio compares the value of a company's most liquid assets to the value of its current liabilities so investors can get a sense of how well it can cover its expenses in the short term.