Quick Ratio, Nonfinancial Corporations for United States

Q0982AUSQ156NNBR • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

35.70

Year-over-Year Change

-13.14%

Date Range

1/1/1946 - 10/1/1961

Summary

The Quick Ratio for Nonfinancial Corporations measures the liquidity of these businesses. It is an important indicator of a company's short-term financial health and ability to meet its immediate obligations.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The Quick Ratio, also known as the Acid Test Ratio, is a financial metric that calculates a company's ability to pay its short-term liabilities using its most liquid assets. It is a more conservative measure of liquidity than the Current Ratio, as it excludes inventory and other less liquid current assets.

Methodology

The data is calculated by the Federal Reserve using financial data reported by nonfinancial corporations.

Historical Context

Economists and analysts monitor the Quick Ratio to assess the near-term financial stability of the corporate sector and its potential impact on the broader economy.

Key Facts

  • The Quick Ratio should generally be above 1 to indicate sufficient liquidity.
  • A lower Quick Ratio may signal increased financial risk for a company or industry.
  • The Quick Ratio is a useful complement to the Current Ratio in evaluating a company's short-term solvency.

FAQs

Q: What does this economic trend measure?

A: The Quick Ratio for Nonfinancial Corporations measures the ability of these businesses to pay their short-term liabilities using their most liquid assets.

Q: Why is this trend relevant for users or analysts?

A: The Quick Ratio is an important indicator of a company's short-term financial health and its capacity to meet immediate obligations, making it a key metric for economists and investors.

Q: How is this data collected or calculated?

A: The Federal Reserve calculates the Quick Ratio using financial data reported by nonfinancial corporations.

Q: How is this trend used in economic policy?

A: Economists and policymakers monitor the Quick Ratio to assess the near-term financial stability of the corporate sector and its potential implications for the broader economy.

Q: Are there update delays or limitations?

A: The Quick Ratio data is published by the Federal Reserve with the same frequency and timeliness as other key economic indicators.

Related Trends

Citation

U.S. Federal Reserve, Quick Ratio, Nonfinancial Corporations for United States (Q0982AUSQ156NNBR), retrieved from FRED.