quick assets
Học thuậtThân thiện
A company's quick assets include cash, marketable securities, and accounts receivable.
Definition
NounAssets that are cash or can be readily converted into cash within a short period, typically 90 days or less. These are also known as liquid assets and are a key component in assessing a company's short-term financial health.
Usage
"Quick assets" is a financial accounting term used to calculate liquidity ratios, such as the quick ratio (or acid-test ratio). It refers to the most liquid assets on a company's balance sheet.
Examples
- The company's quick assets, including cash and marketable securities, were sufficient to cover its immediate liabilities.
- A strong balance sheet should show a healthy amount of quick assets.
- The auditor reviewed the list of quick assets to calculate the firm's liquidity position.
Advanced Usage
- In Financial Analysis: The term is primarily used in corporate finance and investment analysis. The formula for calculating quick assets is typically: Quick Assets = Cash & Cash Equivalents + Marketable Securities + Accounts Receivable. Inventory is usually excluded because it is not as easily convertible to cash without a potential loss in value.
- "Quick assets" vs. "Current Assets": All quick assets are current assets (assets expected to be converted to cash within one year), but not all current assets are considered quick. Inventory and prepaid expenses are common current assets that are excluded from quick assets due to their lower liquidity.
Variants and Related Words
- Liquid Assets (n): A direct synonym for quick assets.
- Quick Ratio (n): A liquidity metric calculated as (Quick Assets / Current Liabilities).
- Current Assets (n): A broader category that includes quick assets plus other assets like inventory and prepaid expenses.
Synonyms
- Liquid assets
- Near-cash assets
Antonyms
- Illiquid assets
- Fixed assets (e.g., property, plant, equipment)
A company's quick assets include cash, marketable securities, and accounts receivable.
Noun
- assets in the form of cash (or easily convertible into cash)