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Quick Ratio

The quick ratio, also known as the acid-test ratio, is a measure of a company's liquidity and ability to meet its short-term financial obligations. It is calculated by dividing the company's total quick assets by its total current liabilities. Quick assets are assets that can be quickly converted to cash, such as cash, marketable securities, and accounts receivable. Total current liabilities are all of the company's short-term financial obligations that are due within one year or less.

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