What Is the Difference Between Quick and Current Ratio?

It is important for forex-analysis/” title=”EBC Financial Group Review: A Comprehensive Forex Analysis”>investors and traders to understand the differences between quick ratio and current ratio when it comes to forex. Both ratios are used as measurements of liquidity, and the nuances between the two can have considerable impacts on the health of a company or currency. In this article, we will discuss the nuances of both quick ratio and current ratio when it comes to forex. The quick ratio and the current ratio measure the liquidity of a company, which is how much cash or cash equivalents a business holds in relation to its current liabilities. The quick ratio is a more conservative measure as it excludes inventory and other current assets from the equation, while the current ratio considers all current assets. The quick ratio must always be lower than the current ratio. A higher ratio indicates stronger liquid position.