Quick ratio (SM.Quick_Ratio)

Quick ratio (SM.Quick_Ratio) is defined as current assets less inventory less pre-paid expenses divided by current liabilities. This ratio helps assess the company’s ability to cover its current liabilities with the most current forms of its assets.

It can be represented as- “(Total Current Assets (SF.BS.TotalCurrentAssets)Total Inventory (SF.BS.TotalInventory)Prepaid Expenses (SF.BS.PrepaidExpenses)) / Total Current Liabilities (SF.BS.TotalCurrentLiabilities)”.