Quick Ratio
The quick ratio measures a company’s short-term liquidity by comparing quick assets to current liabilities. It’s calculated as (Cash + Marketable Securities + Accounts Receivable) ÷ Current Liabilities. A ratio above 1 indicates strong liquidity, showing that the company can pay its immediate debts without relying on inventory.
More Items
Quality of Earnings
Quality of earnings refers to how sustainable and reliable a company’s earnings are. High-quality earnings stem from core operations, not…
Qualified Retirement Plan
A qualified retirement plan meets the requirements set by tax authorities (like IRS or HMRC) for favourable tax treatment. Examples…
Quota
In accounting and finance, a quota refers to a set sales or production target. It’s commonly used in budgeting, forecasting,…
This website uses cookies to improve your experience. You can accept all or reject non-essential cookies.