The quick ratio is a stricter measure of liquidity compared to the current ratio.

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The quick ratio, also known as the acid-test ratio, only considers the most liquid assets (cash, marketable securities, and accounts receivable) in comparison to current liabilities. This means it provides a stricter measure of a company's ability to pay off its short-term debts than the current ratio, which considers all current assets in relation to current liabilities.

The Quick Ratio Is a Stricter Measure of Liquidity Compared