Meaning and formula
The quick ratio evaluates how far current liabilities are covered by assets that are generally easier to convert into cash than inventory. One common simplified version is (current assets − inventory) ÷ current liabilities. Stricter versions may exclude additional line items, so the composition of the numerator must be stated.
Illustrative calculation
If current assets are 300,000 roubles, inventory is 120,000 roubles and current liabilities are 150,000 roubles, the simplified ratio is 1.2. However, overdue trade receivables included in the numerator may create a false impression of adequate coverage.
Limits of the indicator
“Quick” does not mean that every bill is guaranteed to be paid tomorrow. The indicator does not fully capture restrictions on cash or mismatches between incoming and outgoing payment dates. Use it together with the current ratio and cash flows. Compare companies only after checking that the calculation uses the same components and accounts for their operating cycles.