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Quick Ratio

What is quick ratio?

Quick ratio is a benchmark of a company’s position of liquidity, or the ability to convert security and assets to available cash. Quick ratio signals if a company can reach its short-term liabilities with its liquid assets.  

Why is quick ratio important to healthcare?

Quick ratio is important to healthcare because it suggests whether a company can fulfill its obligations, giving insight into healthcare organizations’ financial health. Overall, the better the healthcare organization’s financial health, the better it can operate in business and provide care to patients.