Margins & Ratios

What is the quick ratio?

Whether the company can cover its near-term bills without selling inventory.

How it is calculated

Cash, short-term investments and receivables, divided by current liabilities.

How to read it

Above 1 is comfortable for most industries. Retailers and manufacturers naturally run lower because inventory is a large part of their current assets.

Where the numbers come from

Scrutar computes the quick ratio from the figures each company reports to the SEC in its annual and quarterly filings, using the XBRL data attached to those filings.

More Margins & Ratios metrics

Gross MarginThe share of each dollar of revenue left after the direct cost of what was sold.How to read it →Operating MarginThe share of revenue that becomes operating profit after all running costs.How to read it →Net MarginThe share of revenue that ends up as net income.How to read it →Return on EquityProfit earned for each dollar of shareholder equity.How to read it →Return on AssetsProfit earned for each dollar of assets the company controls.How to read it →Current RatioWhether near-term assets cover near-term obligations.How to read it →Debt/EquityHow much the company relies on borrowed money relative to equity.How to read it →Asset TurnoverHow much revenue each dollar of assets generates.How to read it →

See it for a real company

Ten years of the quick ratio and every other metric on this page, for every company Scrutar covers, computed from SEC filings.

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