Do you agree or disagree on this article box, Give couple reasons to support in your words? The quick ratio is an important indicator to see the ability of payment and the stability of a company's finances within one year. This ratio is calculated from a more severe point of view than the current ratio because only the assets that can be converted to cash is calculated, which means, this ratio can provide the information about whether the company can pay liability on time. Therefore, it can be possible to understand a more accurate financial situation and capacity of payments of a company. When this ratio is too high, the company is holding cash not utilizing cash efficiency, and when it's too low, that indicates the company has to struggle with paying off the debt. In addition, this ratio can be used not only to check short term financial stability for one's own company but also to check the financial stability as a credit report before having business with a new client's company. Knowing financial stability is important when the company tries to have a business with a new client company in order not to have uncollectible debt. Hence, I think the quick ratio is not only utilized in one's own company to see the financial situation, but also it is useful in order to check the financial stability of other companies