10. Post (a) What it is, (b) How to calculate it, and (c) Why it may be of interest to investors.
(About: Quick ratio)
For Palantir
The quick ratio assesses the extent to which the company is able to meet the short-term needs of its clients using its liquid assets. It is a measure of the percentage of the company’s current liabilities that can be met with cash and assets that can be swiftly changed into cash. Because it is used to evaluate the financial health of a business the quick ratio is often referred in the form of an acid test (Tumanggor 2020). A company that has an increase in its quick ratio is believed to have a greater chance of getting through in a crisis than one that has one with a negative ratio. Quick ratio is the same as current liabilities and quick assets. Cont…
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