{"id":25317,"date":"2023-10-24T14:41:24","date_gmt":"2023-10-24T14:41:24","guid":{"rendered":"https:\/\/swoopfunding.com\/us\/?post_type=business-glossary&#038;p=25317"},"modified":"2025-04-24T14:07:51","modified_gmt":"2025-04-24T14:07:51","slug":"quick-assets","status":"publish","type":"business-glossary","link":"https:\/\/swoopfunding.com\/us\/business-glossary\/quick-assets\/","title":{"rendered":"Quick assets"},"content":{"rendered":"<h3>Definition<\/h3>\n<p><span style=\"font-weight: 400;\">Quick assets, also known as liquid assets or current liquid assets, refer to a company&#8217;s most readily convertible and easily marketable <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/asset\/\">assets<\/a> into cash within a short period. <\/span><\/p>\n<h3>What are quick assets?<\/h3>\n<p><span style=\"font-weight: 400;\">Quick assets are a subset of <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/current-assets\/\">current assets<\/a>. They can be quickly be converted into cash, typically within 90 days, without significantly affecting their value. They include cash, marketable securities, and accounts receivable. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Quick assets are used to measure a company&#8217;s short-term liquidity and its ability to meet immediate financial obligations. <\/span><span style=\"font-weight: 400;\">The main components of quick assets typically include:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cash<\/b><span style=\"font-weight: 400;\">: This is the most liquid asset, representing physical currency and funds held in bank accounts.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cash equivalents<\/b><span style=\"font-weight: 400;\">: These are highly liquid investments that are easily convertible to known amounts of cash and have a short maturity period<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/accounts-receivable\/\"><b>Accounts receivable<\/b><\/a><span style=\"font-weight: 400;\">: These are amounts owed to a company by customers for products or services that have been delivered but not yet paid for.\u00a0<\/span><\/li>\n<li aria-level=\"1\"><strong>Marketable securities<\/strong>: These are liquid financial instruments that can be quickly converted into cash, such as <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/stock\/\">stocks<\/a>, <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/bonds\/\">bonds<\/a>, and other short-term investments.<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Quick assets are essential in assessing a company&#8217;s <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/liquidity\/\">liquidity<\/a> and ability to meet its short-term obligations. \u200b<\/span><\/p>\n<h5>Quick asset formulas<\/h5>\n<p>Quick asset formulas are used to measure a company&#8217;s liquidity by assessing its ability to meet short-term <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/obligations\/\">obligations<\/a> with its most liquid assets. The two main formulas are:<\/p>\n<ul>\n<li><span class=\"base\"><a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/quick-assets\/\"><strong><span class=\"mord text\"><span class=\"mord\">Quick assets <\/span><\/span><\/strong><\/a><span class=\"mrel\">= <\/span><\/span><span class=\"base\"><span class=\"mord text\"><span class=\"mord\">Cash and cash equivalents <\/span><\/span><span class=\"mbin\">+ <\/span><\/span><span class=\"base\"><span class=\"mord text\"><span class=\"mord\">Marketable securities <\/span><\/span><span class=\"mbin\">+ A<\/span><\/span><span class=\"base\"><span class=\"mord text\"><span class=\"mord\">ccounts receivable<\/span><\/span><\/span><\/li>\n<li><a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/quick-ratio\/\"><strong>Quick ratio<\/strong><\/a> = Quick assets \/ <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/current-liabilities\/\">Current liabilities<\/a><\/li>\n<\/ul>\n<p>These formulas help determine a company&#8217;s financial health by focusing on its readily available assets.<\/p>\n<h3>Example of quick assets<\/h3>\n<p>Company XYZ&#8217;s <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/balance-sheet\/\">balance sheet<\/a> shows the following assets:<\/p>\n<ul>\n<li>Cash: $50,000<\/li>\n<li>Marketable securities: $30,000<\/li>\n<li>Accounts receivable: $20,000<\/li>\n<li>Inventory: $40,000<\/li>\n<li>Prepaid expenses: $10,000<\/li>\n<\/ul>\n<p>To calculate the quick assets, we exclude inventory and prepaid expenses since they are not easily convertible into cash:<\/p>\n<p>Quick assets = $50,000 + $30,000 + $20,000 = $100,000<\/p>\n<p>In this example, Company XYZ&#8217;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.<\/p>\n","protected":false},"author":1,"template":"","class_list":["post-25317","business-glossary","type-business-glossary","status-publish","hentry"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_blog_full":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"<p>Definition Quick assets, also known as liquid assets or current liquid assets, refer to a company&#8217;s most readily convertible and easily marketable assets into cash within a short period. What are quick assets? Quick assets are a subset of current assets. They can be quickly be converted into cash, typically within 90 days, without significantly affecting their value. They include cash, marketable securities, and accounts receivable. Quick assets are used to measure a company&#8217;s short-term liquidity and its ability to meet immediate financial obligations. The main components of quick assets typically include: Cash: This is the most liquid asset, representing&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"root","url":"https:\/\/swoopfunding.com\/us\/author\/root\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/business-glossary\/25317","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/business-glossary"}],"about":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/types\/business-glossary"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/users\/1"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media?parent=25317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}