Quick Ratio

A contractor's ability to pay current liabilities without having to convert non-cash assets to cash is measured by the quick ratio. The formula for computation is� (cash + receivables) / current liabilities. As a result, unlike the current ratio, the quick ratio excludes assets such as prepaids, inventories, and underbillings. Without selling goods, a contractor with a lower quick�ratio may not be able to meet their obligations. A high quick ratio indicates ineffective cash management.�

‍

Related Terms

Back to Glossary

Check Out Our Recent Blogs!

Intuit Enterprise Suite Winter 2026 Release: Full Feature Breakdown for Construction Companies

IES Winter 2026 delivers construction beta with project phases, cost groups, AIA invoicing, and negative change orders, plus parallel approvals, AI agents, BI tools, and MAC migration support. RedHammer breaks down every feature with honest takes on what still needs work.

Intuit Enterprise Suite: Construction Edition Is Finally Here

Intuit launches its first industry-specific ERP for construction. The IES Construction Edition covers the full project lifecycle—from proposals to AIA invoicing—with AI-powered tools and multi-entity support, putting traditional construction platforms on notice.

RedHammer and Hammr Partner to Simplify Payroll, Job Costing, and Financial Reporting for Contractors

RedHammer and Hammr partner to connect construction payroll, time tracking, and compliance to clean job costing, WIP, and reporting. Contractors capture labor correctly in the field and map it into accounting for faster close, clearer margins, and earlier project visibility.

QuickBooks Classes vs IES Dimensions: How to Turn One-Lane Reporting into Multi-Dimensional Insight

QuickBooks Classes give you one tracking dimension. IES Dimensions provide up to 20, with hierarchies, multi-tag reporting, better job costing, and multi-entity consolidation, offering contractors deeper insight and cleaner, more flexible financial reporting.