QR -Quick Ratio is expressed as the ratio of current assets and current liabilities.
QR = (Current Assets - Inventories) / Current Liabilities
The indicated optimum is between 1 to 1.5. A higher value is favorable in terms of creditors, but for the management of the enterprise it is a signal of small profitability (too much of current assets is bound in the form of cash, which brings little or no interest). It is therefore necessary to determine the optimal structure of the prompt current assets. This optimization is concerned with management of inventory, receivables and cash.