Denoting the position of a company lacking sufficient cash, or assets that can be quickly converted into cash, to meet the demands of creditors.
A critical measure used to assess a company's short-term liquidity, focusing on the ability to cover current liabilities with liquid assets.
The Quick Ratio, also known as the Acid-Test Ratio or Liquid Ratio, is a measure of a company's ability to meet its short-term obligations using its most liquid assets.
