Financial Ratios
Quick Ratio
Definition
What is Quick Ratio?
Liquid current assets divided by current liabilities, commonly excluding inventory and prepayments.
Example in practice
How This Looks in Practice
Cash and receivables of ₦900 million against ₦600 million current liabilities give a 1.5 quick ratio.
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Related Terms
Financial Ratios
Gross Margin
Gross profit expressed as a percentage of revenue.
Financial RatiosOperating Margin
Operating profit expressed as a percentage of revenue.
Financial RatiosEBITDA Margin
EBITDA expressed as a percentage of revenue.
Equity ValuationEarnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.