Adjusted quick ratio

Method of calculation

Formula for adjusted quick ratio: (current assets - inventory - short-term prepayments - receivables above 12 mths - receivables claimed in court) / (short term liabilities - short-term liabilities above 12 mths + current principal repayment)

Ratio's interpretation

  • The interpretation is the same as in the case of quick ratio, but with the difference of more detailed information on liquid assets and short-term liabilities.