#1. The Quick ratio, you’ll hear of this term time and time again. Quick ratios are used in order to determine whether a company can meet its short term obligations such as current accounts payable, interest payments and operating expenses.
Quick Ratio = (current assets – Inventories)/Current Liabilities
Using Apples 2016 10K for example we have (current assets of 106,869 – inventories of 2,132)/current liabilities of 79,006 = quick ratio of 1.33
AAPL Balance Sheet 10K
#2. The Current ratio, this is used