Quick assets

Page written by AI. Reviewed internally on February 14, 2024.


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.

What are quick assets?

They are a subset of current assets.

The main components of quick assets typically include:

  1. Cash: This is the most liquid asset, representing physical currency and funds held in bank accounts.
  2. Cash equivalents: These are highly liquid investments that are easily convertible to known amounts of cash and have a short maturity period
  3. 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. ​

Example of quick assets

Company XYZ’s balance sheet shows the following assets:

  • Cash: £50,000
  • Marketable securities: £30,000
  • Accounts receivable: £20,000
  • Inventory: £40,000
  • Prepaid expenses: £10,000

To calculate the quick assets, we exclude inventory and prepaid expenses since they are not easily convertible into cash:

Quick assets = £50,000 + £30,000 + £20,000 = £100,000

In this example, Company XYZ’s quick assets total £100,000, which represents the amount of assets that can be quickly converted into cash to meet short-term obligations or unexpected expenses.

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