What are 'Quick Assets'
Quick assets refer to assets owned by a company with a commercial or exchange value that can easily be converted into cash or that is already in a cash form. Quick assets are the highly liquid assets held by a company, including marketable securities and accounts receivable. Companies use quick assets to calculate certain financial ratios that are used in decision making, including the quick ratio.
BREAKING DOWN 'Quick Assets'
Unlike any other types of assets, quick assets represent economic resources that can be turned into cash in a relatively short period of time without a significant loss of value. Cash and cash equivalents are the most liquid current assets items included in quick assets, while marketable securities and accounts receivable are also quick assets. Quick assets exclude inventories, because it may take more time for a company to convert them into cash.Composition of Quick Assets
Companies typically keep some portion of their quick assets in the form of cash and marketable securities as a buffer to satisfy their immediate operating, investing or financing needs. A company that has a low cash balance in its quick assets may satisfy its needs for liquidity by tapping into its available lines of credit. Depending on the nature of a business and the industry in which it operates, a substantial portion of its quick assets may be tied to accounts receivable. For example, companies that sell products and services to corporate clients may have large account receivable balances, while retail companies that sell products to individual consumers may have negligible accounts receivable on their balance sheets.
Usefulness of Quick Assets
Analysts most often use quick assets to assess a company's ability to satisfy its immediate bills and obligations that are due within a year. The total amount of quick assets is used in the quick ratio, sometimes referred to as the acid test, which is a financial ratio that divides the sum of a company's cash, marketable securities and accounts receivable by its current liabilities. This ratio allows investment professionals to determine whether a company can meet its financial obligations if its revenues or cash collections happen to slow down. The quick ratio is contrasted against the current ratio, which is equal to a company's total current assets, including its inventories, divided by its current liabilities. The quick ratio represents a more stringent test for the liquidity of a company in comparison to the current ratio.

Quick Ratio
The quick ratio is an indicator of a company’s shortterm liquidity. ... 
Current Assets
A balance sheet account that represents the value of all assets ... 
Cash Asset Ratio
The current value of marketable securities and cash, divided ... 
Liquidity
The degree to which an asset or security can be quickly bought ... 
Quick Liquidity Ratio
The total amount of a company’s quick assets divided by the sum ... 
Liquid Asset
An asset that can be converted into cash quickly and with minimal ...

Investing
What Are Quick Assets?
A company’s quick assets can be easily converted into cash. 
Investing
What is the Cash Ratio?
The cash ratio is the ratio of a company's total cash and cash equivalents to its current liabilities. 
Investing
Do Your Investments Have ShortTerm Health?
If a company is strong enough to survive tough times, it is more likely to provide longterm value. 
Investing
Understanding Financial Liquidity
Understanding how this measure works in the market can help keep your finances afloat. 
Managing Wealth
Current Assets
Current assets are all of the assets a company uses to fund its daily operations. These are the assets the company could convert into cash within a year in the normal course of business. 
Investing
Liquidity Measurement Ratios
Learn about the current ratio, quick ratio, cash ratio and cash conversion cycle. 
Investing
Dynamic Current Ratio: What It Is And How To Use It
Learn why this ratio may be a good alternative to the current, cash and quick ratios. 
Managing Wealth
What's an Asset?
An asset is a resource with economic value. 
Investing
Financial Analysis: Solvency Vs. Liquidity Ratios
Solvency and liquidity are equally important for a company's financial health. A number of financial ratios are used to measure a company’s liquidity and solvency, and an investor should use ... 
Investing
The Working Capital Position
Learn how to correctly analyze a company's liquidity and beat the average investor.

What is the formula for calculating the quick ratio in Excel?
Understand the basics of the quick ratio, including how it is used as a measure of a company's liquidity and how to calculate ... Read Answer >> 
What are some alternative liquidity ratios to the cash ratio?
Learn what the cash ratio measures, and understand what two other liquidity ratios can be used by a company to replace the ... Read Answer >> 
What are the main differences between the current ratio and the quick ratio?
Find out how the quick ratio and the current ratio can offer different views on a company's ability to pay off liabilities. Read Answer >> 
When are current assets converted to liquid assets?
Understand the meaning of the accounting term ''current assets,'' and learn when and how current assets are converted into ... Read Answer >> 
How do you calculate the quick ratio?
Read about the quick ratio and about the different ways of calculating it, where to find information for it and when you ... Read Answer >> 
Are current assets liquid or capital?
Take a deeper look at liquid current assets for businesses and individuals, and learn how they differ from other types of ... Read Answer >>