Skip to content
Dictionary by pitch.dog
Financial ratios & operating efficiency · Working

Quick ratio

Also called: acid-test ratio

ELI5

Highly liquid current assets divided by current liabilities under a stated definition.

Used in conversation

“Compare quick ratio with the same cohort and period before drawing a conclusion.”

Pitch context

You will see “Quick ratio” in financial models, budgets, board packs and investor materials when the discussion reaches financial ratios & operating efficiency.

Why it matters: In financial ratios & operating efficiency, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

Need an investor or company deck?

Bring the business, the evidence or the half-formed ask. We help it travel beyond the spreadsheet.

See how pitch.dog can help
Sources & evidence · 5

Direct term-level sources and supporting source families.