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quick ratio

   Also found in: Financial, Wikipedia 0.01 sec.

quick ratio

See liquidity ratio.



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Your bank will be interested in the current ratio (total current assets divided by total current liabilities) and the quick ratio (cash and equivalents plus net trade receivables, divided by total current liabilities).
The negative coefficient in the quick ratio equation suggests that derivatives allow firms to hold a lower level of liquid assets.
 
 
 
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