The quick liquidity ratio, also known as the acid-test ratio or the liquid ratio, is a financial measure that indicates a company's ability to pay its short-term debts using its most liquid assets. It is calculated by dividing a company's current assets, which are assets that can be converted into cash within 90 days, by its current liabilities, which are debts that are due within one year. A high quick liquidity ratio indicates that a company has a strong ability to meet its short-term debts and financial obligations, while a low ratio may indicate financial stress. The quick liquidity ratio is used to evaluate a company's financial health and is generally considered to be more conservative than the current ratio, which includes all current assets in the calculation. It is important for companies to maintain a healthy quick liquidity ratio in order to maintain the confidence of creditors and investors.