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. It is calculated by dividing quick assets—such as cash, marketable securities, and accounts receivable—by current liabilities. Unlike the current ratio, the quick ratio excludes inventory and other less liquid current assets, providing a more conservative view of a company’s short-term financial health. A higher quick ratio indicates that a company is more capable of paying off its obligations without relying on the sale of inventory, which may take time or be uncertain.