Quick ratio: the meaning
Like liquidity, but without stock, which cannot always be sold quickly.
Also called the acid test. Especially relevant for trade and manufacturing.
How to read it
Above 1 is healthy. Much lower than ordinary liquidity means a lot of money sits in stock.
On Nummo you find this figure in the Figures tab of every company that filed annual accounts, over the years. In the tables, a small card gives this explanation in short.
How to calculate it
(current assets − stock) ÷ short-term debt (in belgian annual accounts: (29/58 − 3) ÷ 42/48)
The item numbers follow the official format of Belgian annual accounts, which builds on the European Accounting Directive.
More: Current ratio and quick ratio: liquidity explained →
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