What is quick ratio? How to calculate quick ratio?

Quick Ratio, also known as Quick Ratio in English, sometimes also called "Acid-Test Ratio" in English, is Acid-Test Ratio in English. It is an indicator that measures the ability of a listed company to use its current assets (excluding inventory) to pay its short-term current liabilities. The quick ratio is very similar to the cash ratio and current ratio: Current ratio is a measure of a company's ability to use all of its current assets to pay short-term debt; The quick ratio is a more conservative measure of a company's short-term solvency that excludes inventory and other assets that are difficult to convert into cash quickly from current assets; The cash ratio is more conservative than the quick ratio and measures a company's ability to use cash and cash equivalents to pay short-term debt. Generally speaking, the greater the quick ratio, the stronger the listed company's ability to repay short-term debt. Generally speaking, a quick ratio greater than 1 is a good value. When calculating the quick ratio, it is necessary to use cash and cash equivalents, marketable securities and accounts receivable as "quick" current assets, that is, "quick" assets that can be quickly converted into cash within 90 days, and then divide them by short-term current liabilities including short-term debt, accounts payable, and debt payable. The calculated ratio is used to evaluate a company's ability to quickly cope with current liabilities. Usually, when the quick ratio is less than 1, it means that the listed company's current asset liquidity is limited and it does not have enough ability to repay its existing current liabilities. On the contrary, when the quick ratio is greater than 1, it means that the listed company's current current asset holdings are sufficient and can fully meet the current current liabilities.