Quick liquidity ratio = cash + cash equivalents + receivables / total current liabilities -This is a more conservative measure of liquidity than the current ratio and shows the degree to which the current liabilities of the firm are covered by the most liquid current assets, assets that can be quickly converted into cash for the amount that would have deviated minimally from the book value. Stocks and other less liquid current assets are excluded from this ratio. Generally, when the ratio has a value in the range of less than 1 to 1 it means that the ability of the company to settle current liabilities depends on stock and other less liquid current assets.