Quick assets, also known as liquid assets or current liquid assets, refer to a company’s most readily convertible and easily marketable assets into cash within a short period, typically within one year or less. They are a subset of current assets.
The main components of quick assets typically include:
- Cash: This is the most liquid asset, representing physical currency and funds held in bank accounts.
- Cash equivalents: These are highly liquid investments that are easily convertible to known amounts of cash and have a short maturity period
- Accounts receivable: These are amounts owed to a company by customers for products or services that have been delivered but not yet paid for.
Quick assets are essential in assessing a company’s liquidity and ability to meet its short-term obligations.