A quarterly report is a financial statement that covers three months or a quarter of the year. The SEC requires public companies to issue a quarterly report called a 10-Q. Quarterly reports are unaudited and are also called interim reports. Reports that cover a full year are called annual reports.
The quick ratio is one of the liquidity ratios. It measures the dollars of “quick assets” for each dollar of current liabilities. The “quick assets” are cash, receivables, and marketable securities. Both assets and liabilities are shown on a company’s balance sheet. Quick ratio equals the total of cash, receivables, and marketable securities divided by the total current liabilities.
The quick ratio is also called the acid-test ratio.
Assume a company has cash of $15,000, receivables of $45,000, and marketable securities of $10,000. The company has current liabilities of $100,000. The quick ratio is $70,000 / $100,000 = 0.70.