The fast ratio relates to the ratio

The fast ratio relates to the ratio of a company's fast assets to short-term liabilities. The so-called quick assets refers to the balance of current assets less the poorly realisable and unstable inventory, accruals and outstanding losses of current assets, including funds, short-term investments and receivables. Without unstable assets with weak liquidity, such as inventories, the rapid measure can accurately and more reliably assess the liquidity of corporate assets and their ability to repay short-term liabilities than the current measure. The Quick Ratio is a complement to the current ratio and also reflects the liquidity of the funds.