MetricHQ Logo

What is the difference?

Quick Ratio vs Current Ratio

Quick Ratio

Current Ratio

What is it?

The Quick Ratio measures the ability of your organization to meet any short-term financial obligations with assets that can be quickly converted into cash. It considers the ability for Current Assets, less inventory, to cover Current Liabilities.

Current Ratio measures the ability of your organization to pay all of your financial obligations in one year. This ratio accounts for your current assets, such as accounts receivable, and your current liabilities, such as accounts payable, to help you understand the solvency of your business. Generally speaking, a ratio between 1.5 and 3 is preferable and indicates strong financial performance.

Formula

ƒ (Current Assets – Inventory) / (Current Liabilities)
ƒ (Current Assets) / (Current Liabilities)

Track this metric

Quick Ratio (Custom data source)

Current Ratio (Custom data source)

Published and updated dates

Date created: Mar 1, 2019

Latest update: Oct 18, 2019

Date created: Feb 8, 2019

Latest update: Sep 27, 2019