InvoiceBerry Tips for for Freelancers & Small Businesses 9 Most Important Financial Numbers Explained | Page 11

8. The Quick Ratio
This number can quickly show the financial stability of your
business. You get it from your balance sheet. For the quick
ratio:
current assets / current liabilities = quick ratio
Your ratio should be greater than 1. If your ratio is unfortunately
lower, that means that you’ll need to work to improve your
company’s profitability.