Answer:
Quick ratio
Explanation:
The quick ratio measures a firm ability to pay its obligations as they become due. It indicates a company's financial strength of generating sufficient resources to pay its current liabilities. The quick ratio is also the 'acid test' ratio.
The quick ratio shows a company's financial strength in meeting its current liabilities using 'quick' assets. A 'Quick' asset is a current asset that can be converted to cash in less than 90 days. They include cash and cash equivalents, accounts receivable, and marketable securities. The quick ratio is obtained by dividing 'quick' assets by current liabilities.
