Quick Ratio 

The Quick Ratio, also known as the Acid-Test Ratio, is a financial metric that measures a company's ability to meet its short-term liabilities using its most liquid assets. Unlike the current ratio, which includes inventory, the quick ratio focuses on assets that can be quickly converted into cash, providing a more stringent assessment of short-term financial health. 

Formula: 

Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities   

A quick ratio of 1.0 or higher generally indicates that a company can meet its immediate obligations without needing to sell inventory or secure additional financing. It’s especially useful in industries with long inventory turnover cycles or unpredictable revenue streams.