The quick ratio and the number of days' sales in receivables measure:

Question

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The quick ratio and the number of days' sales in receivables are both measures of a company's liquidity, which refers to its ability to meet short-term obligations. The quick ratio specifically measures a company's ability to pay off current liabilities with its most liquid assets, while the number of days' sales in receivables measures how many days it takes for a company to collect its outstanding receivables. These measures do not directly relate to profitability or a company's cash conversion cycle, which is a measure of how long it takes for a company to convert its investments in inventory and other assets back into cash.

The Quick Ratio and the Number of Days' Sales in Receivables