Which financial ratio measures the company's ability to pay off its short-term obligations from current assets,excluding inventories?

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The quick ratio, also known as the acid-test ratio, measures a company's ability to pay off its short-term obligations from current assets excluding inventories. It gives a more conservative measure of a company's liquidity than the current ratio, which includes inventories. The formula for the quick ratio is (Current assets - Inventories) / Current liabilities.

Which Financial Ratio Measures the Company's Ability to Pay Off