{"id":15792,"date":"2023-08-30T09:06:06","date_gmt":"2023-08-30T08:06:06","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=15792"},"modified":"2025-03-14T16:10:05","modified_gmt":"2025-03-14T16:10:05","slug":"what-is-quick-ratio","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/what-is-quick-ratio\/","title":{"rendered":"What is quick ratio?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is quick ratio?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2023-08-30T09:06:06+01:00\">30 August, 2023<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is quick ratio?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-quick-ratio\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/staceymcintosh\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/11\/Stacey-McIntosh-350-1.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Stacey McIntosh<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>When it comes to financial statement analysis, there is no shortage of ratios to interpret the results of your business\u2019s performance. Today, we\u2019re focusing on one of the most essential of those calculations\u2014the quick ratio. Known for its ability to provide insights into a company\u2019s short-term liquidity, the quick ratio plays a crucial role in assessing a business\u2019s financial health.<\/p>\n\n\n\n<p>What exactly is the quick ratio, you ask? It\u2019s a vital tool that helps us understand a company\u2019s short-term liquidity\u2014basically, how well a business can meet its short-term obligations. Whether a company has to pay back a loan or settle an invoice from a supplier, its quick ratio can reveal if it\u2019s equipped to do so.<\/p>\n\n\n\n<p>The quick ratio is an unsparing test of a company\u2019s financial resilience, making no allowances for assets that can\u2019t be quickly converted to cash. Because of this, it plays a pivotal role in giving a clear, undistorted view of a company\u2019s immediate financial strength.<\/p>\n\n\n\n<p>Join us as we delve deeper into the quick ratio, breaking down its components, learning how to calculate it, and discovering what it tells us about a business\u2019s financial health. By the end of this article, you will be armed with the knowledge you need to make informed financial decisions, contribute to strategic discussions, or simply understand the financial news a bit better. Buckle up and enjoy the read.<\/p>\n\n\n\n<p>Here&#8217;s what we cover:<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-the-quick-ratio-in-accounting\" data-level=\"2\">What is the quick ratio in accounting?<\/a><\/li><li><a href=\"#h-the-quick-ratio-formula-understanding-the-components\" data-level=\"2\">The quick ratio formula: Understanding the components<\/a><\/li><li><a href=\"#h-how-to-calculate-the-quick-ratio-a-step-by-step-guide\" data-level=\"2\">How to calculate the quick ratio: A step-by-step guide<\/a><\/li><li><a href=\"#h-how-to-interpret-the-quick-ratio\" data-level=\"2\">How to interpret the quick ratio<\/a><\/li><li><a href=\"#h-what-is-a-good-quick-ratio\" data-level=\"2\">What is a good quick ratio?<\/a><\/li><li><a href=\"#h-current-ratio-vs-quick-ratio-what-s-the-difference\" data-level=\"2\">Current ratio vs quick ratio: What&rsquo;s the difference?<\/a><\/li><li><a href=\"#h-how-to-find-the-quick-ratio-practical-applications-in-real-business-scenarios\" data-level=\"2\">How to find the quick ratio: Practical applications in real business scenarios<\/a><\/li><li><a href=\"#h-the-power-of-the-quick-ratio-in-financial-analysis\" data-level=\"2\">The power of the quick ratio in financial analysis<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-the-quick-ratio-in-accounting\">What is the quick ratio in accounting?<\/h2>\n\n\n\n<p>The quick ratio, often referred to as the \u201c<a href=\"https:\/\/www.investopedia.com\/terms\/a\/acidtest.asp\" target=\"_blank\" rel=\"noopener noreferrer\">acid test ratio,<\/a>\u201d is a liquidity metric used to gauge a company\u2019s capacity to pay its short-term obligations using its most liquid assets. The key distinction here is the term \u201cmost liquid assets\u201d\u2014these are assets that can be converted into cash quickly (hence the word \u201cquick\u201d in the ratio\u2019s name).<\/p>\n\n\n\n<p>Picture a local bakery that\u2019s hit with a sudden need to pay off a debt. Their most liquid assets are the resources they can quickly use to pay that debt. This might be the cash in their register or the fresh baked goods they can sell in a day. However, the flour and sugar stored in the back, despite being essential for running the bakery, aren\u2019t as liquid. They can\u2019t be sold off as quickly or easily as the ready-to-go bread and pastries.<\/p>\n\n\n\n<p>And that\u2019s the essence of the <a href=\"https:\/\/www.theforage.com\/blog\/skills\/quick-ratio\" target=\"_blank\" rel=\"noopener noreferrer\">quick ratio<\/a>\u2014it wants to know about the cash and the baked goods (the easily liquidated stuff), but it isn\u2019t interested in the flour and sugar (the not-so-easily liquidated stuff). It\u2019s a stringent measure of how well a company can meet its debts without relying on selling its inventory. This offers a brutally honest picture of financial health.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-quick-ratio-formula-understanding-the-components\">The quick ratio formula: Understanding the components<\/h2>\n\n\n\n<p>The quick ratio is calculated using the formula:<\/p>\n\n\n\n<p><strong>quick ratio<\/strong> = (Current Assets \u2013 Inventory) \/ Current Liabilities<\/p>\n\n\n\n<p>Let\u2019s break down these components:<\/p>\n\n\n\n<p><strong>Current Assets<\/strong>: These are assets that can be converted into cash within a year. They include cash, marketable securities, accounts receivable, etc.<\/p>\n\n\n\n<p><strong>Inventory<\/strong>: These are goods that the company has yet to sell. Although technically a current asset, inventory is often excluded from the quick ratio because it may not be as quickly convertible into cash.<\/p>\n\n\n\n<p><strong>Current Liabilities<\/strong>: These are obligations the company has to pay within a year, like accounts payable, salaries payable, short-term debt, etc.<\/p>\n\n\n\n<p>Each component plays a crucial role in determining the quick ratio, offering insights into the company\u2019s liquidity status.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-calculate-the-quick-ratio-a-step-by-step-guide\">How to calculate the quick ratio: A step-by-step guide<\/h2>\n\n\n\n<p>Calculating the quick ratio is straightforward once you understand the formula\u2019s components:<\/p>\n\n\n\n<p>Subtract the company\u2019s inventory from its current assets. The remaining number is the company\u2019s most liquid assets.<\/p>\n\n\n\n<p>Divide this value by the company\u2019s current liabilities.<\/p>\n\n\n\n<p>For instance, if a fictitious company, Tech Zone, has current assets of \u00a3500,000, an inventory of \u00a3100,000, and current liabilities of \u00a3200,000, the quick ratio would be calculated as follows: (\u00a3500,000 \u2013 \u00a3100,000) \/ \u00a3200,000 = 2.0.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-interpret-the-quick-ratio\">How to interpret the quick ratio<\/h2>\n\n\n\n<p>A quick ratio of 2, as calculated above, indicates that the company has twice as many easily liquidated assets as it has short-term liabilities. This suggests that the company could theoretically pay off all its short-term liabilities and still have an equal amount of its most liquid assets left over.<\/p>\n\n\n\n<p>The interpretation of the quick ratio can provide key insights into the financial stability of a company. A quick ratio greater than 1 generally indicates that a company is in good financial health, as it can cover its short-term obligations. In our example, a quick ratio of 2 can be seen as a robust financial position, suggesting that the company is well-equipped to handle any short-term financial uncertainties or obligations.<\/p>\n\n\n\n<p>However, it\u2019s crucial to remember that while a quick ratio of 2 is usually a good sign, it\u2019s not universally so. Context matters. For instance, if the industry standard is a quick ratio of 3, then a quick ratio of 2 might be less positive. Or if a company\u2019s quick ratio is high because it\u2019s struggling to sell its products (i.e., it\u2019s accumulating cash because sales are low), that\u2019s a potential red flag.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-good-quick-ratio\">What is a good quick ratio?<\/h2>\n\n\n\n<p>Determining what constitutes a \u201cgood\u201d quick ratio can be subjective\u2014it largely depends on industry standards and the specific circumstances of the company. However, a quick ratio of 1.0 is generally considered good, indicating that the company has as much in its most liquid assets as it owes in short-term liabilities. Remember, context matters.<\/p>\n\n\n\n<p>Startup businesses generally have a lower quick ratio compared to more mature businesses, because the startups typically have more debt. This could be perfectly normal given their respective business models.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-current-ratio-vs-quick-ratio-what-s-the-difference\">Current ratio vs quick ratio: What\u2019s the difference?<\/h2>\n\n\n\n<p>Another commonly used liquidity ratio is the current ratio, calculated as Current Assets divided by Current Liabilities. Unlike the quick ratio, it includes all current assets\u2014including inventory\u2014in the calculation. Therefore, the current ratio could provide a more lenient view of a company\u2019s liquidity compared to the quick ratio.<\/p>\n\n\n\n<p>For example, a company with significant inventory might have a healthy current ratio but a lower quick ratio. This difference can be critical, especially in industries where inventory cannot be easily or quickly converted into cash.<\/p>\n\n\n\n<p>Indeed, while both the quick ratio and the current ratio aim to measure a company\u2019s ability to cover its short-term liabilities, they offer different perspectives due to their varied treatment of inventory. It\u2019s important to remember that just because a company has a sizable inventory, it doesn\u2019t mean these assets can be easily or swiftly monetized.<\/p>\n\n\n\n<p>This discrepancy can lead to interesting insights in financial analysis. A company could show a strong current ratio, suggesting sound liquidity. However, a closer examination via the quick ratio could tell a different story, revealing potential weaknesses in liquidity once the less liquid inventory is excluded. Therefore, understanding both ratios and their unique perspectives can provide a more holistic and accurate picture of a company\u2019s short-term financial health.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-find-the-quick-ratio-practical-applications-in-real-business-scenarios\">How to find the quick ratio: Practical applications in real business scenarios<\/h2>\n\n\n\n<p>In practical business scenarios, quick ratios are invaluable. They help creditors assess a company\u2019s ability to repay a loan, assist potential investors in understanding a company\u2019s financial health, and provide insights for internal decision-making processes.<\/p>\n\n\n\n<p>Quick ratios aren\u2019t just valuable to external stakeholders. They also play a vital role in internal decision-making processes. Company executives can use the quick ratio to evaluate their organization\u2019s financial status, make informed decisions about future expenditures, or identify areas that need improvement to enhance the company\u2019s liquidity position.<\/p>\n\n\n\n<p>But how do you go about finding the current asset, current liability, and inventory numbers you need to calculate the quick ratio? As it turns out, all the data you need is contained within a company\u2019s balance sheet. The balance sheet provides a snapshot of a company\u2019s financial status at a specific point in time, listing its assets, liabilities, and equity.<\/p>\n\n\n\n<p>Remember, the quick ratio is calculated using current assets (excluding inventory) and current liabilities listed on the balance sheet.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-power-of-the-quick-ratio-in-financial-analysis\">The power of the quick ratio in financial analysis<\/h2>\n\n\n\n<p>Whether you\u2019re an investor, a creditor, or a company executive, understanding the quick ratio can provide critical insights into a company\u2019s short-term financial health. From knowing what a quick ratio is, how to calculate it, what a good quick ratio looks like, to the differences between quick ratio and current ratio, you now have a powerful tool to aid in your financial decision-making process.<\/p>\n\n\n\n<p>Remember, while ratios like the quick ratio can provide valuable insights, they should always be used in conjunction with other financial analysis tools and industry knowledge for a holistic understanding of a company\u2019s financial performance. This will give you a better overall picture of how the business is doing.<\/p>\n\n\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/business-finances\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBusiness finances\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-15795 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accountant-accounting tag-accountant-automation tag-brexit-business tag-business-finances business_type-small-business business_type-medium-sized-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-1440x810.jpg\" class=\"card-post__image\" alt=\"man in office\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T15:28:18+01:00\">2 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-account-reconciliation\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tAccount reconciliation: What it is and best practices\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tAn important account reconciliation guide including the basics, best practices, and why account reconciliation is essential for businesses.\n\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-30283 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-business-finances tag-financial-education business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/strategic-budgeting\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-768x478.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-1300x810.jpg 1300w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-27T15:12:53+01:00\">27 May, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tStrategic budgeting explained: the finance team&#8217;s role in long-term planning\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-30270 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-business-finances tag-reporting business_type-small-business business_type-medium-sized-business industry-saas\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/saas-revenue-recognition\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1488918938-684x384.jpg\" class=\"card-post__image\" alt=\"A man using a computer and protecting himself from phishing\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1488918938-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1488918938-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1488918938-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-27T12:11:12+01:00\">27 May, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">14 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tA guide to SaaS revenue recognition with examples\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-9993 post type-post status-publish format-audio has-post-thumbnail hentry category-money-matters tag-business-finances tag-cash-flow tag-start-business tag-sound-advice-podcast post_format-post-format-audio business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/sound-advice-how-to-fund-your-startup-sam-jones\/?scroll=1\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_19-684x384.jpg\" class=\"card-post__image\" alt=\"Sam Jones\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_19-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_19-768x768.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_19-810x810.jpg 810w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" width=\"24\" height=\"24\" class=\"card-post__meta-icon svg-icon\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 24 24\"><path d=\"M9.75 1.5C8.793 1.5 8 2.293 8 3.25v8.377a.8.8 0 0 0 0 .243v4.38c0 .957.793 1.75 1.75 1.75h5.5c.957 0 1.75-.792 1.75-1.75v-4.377a.8.8 0 0 0 0-.243V3.25c0-.957-.792-1.75-1.75-1.75zm0 1.5h5.5c.147 0 .25.102.25.25V11h-6V3.25c0-.148.102-.25.25-.25m-4.012 7.989a.75.75 0 0 0-.739.761v4.5A4.76 4.76 0 0 0 9.749 21h2v2a.76.76 0 0 0 .216.537.74.74 0 0 0 .534.223.76.76 0 0 0 .535-.223.74.74 0 0 0 .216-.537v-2h2A4.76 4.76 0 0 0 20 16.25v-4.5a.76.76 0 0 0-.216-.537.74.74 0 0 0-.535-.223.75.75 0 0 0-.75.76v4.5a3.24 3.24 0 0 1-3.25 3.25h-5.5a3.24 3.24 0 0 1-3.25-3.25v-4.5a.755.755 0 0 0-.469-.707.8.8 0 0 0-.293-.055zM9.5 12.5h6v3.75c0 .147-.102.25-.25.25h-5.5a.24.24 0 0 1-.25-.25zm3 1a.997.997 0 0 0-1 1 .997.997 0 0 0 1 1 .997.997 0 0 0 1-1 .997.997 0 0 0-1-1\" \/><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-21T15:03:16+01:00\">21 May, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">37 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow to fund\u00a0a\u00a0start-up: Top tips from\u00a0Dragons\u2019\u00a0Den\u2019s \u2018best ever pitcher\u2019\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-10198 post type-post status-publish format-audio has-post-thumbnail hentry category-money-matters tag-business-finances tag-circular-economy tag-start-business tag-sound-advice-podcast tag-startup-stories tag-sustainability post_format-post-format-audio business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/sound-advice-start-small-business-mart-drake-knight\/?scroll=1\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_22-684x384.jpg\" class=\"card-post__image\" alt=\"Mart Drake-Knight\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_22-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_22-768x768.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_22-810x810.jpg 810w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" width=\"24\" height=\"24\" class=\"card-post__meta-icon svg-icon\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 24 24\"><path d=\"M9.75 1.5C8.793 1.5 8 2.293 8 3.25v8.377a.8.8 0 0 0 0 .243v4.38c0 .957.793 1.75 1.75 1.75h5.5c.957 0 1.75-.792 1.75-1.75v-4.377a.8.8 0 0 0 0-.243V3.25c0-.957-.792-1.75-1.75-1.75zm0 1.5h5.5c.147 0 .25.102.25.25V11h-6V3.25c0-.148.102-.25.25-.25m-4.012 7.989a.75.75 0 0 0-.739.761v4.5A4.76 4.76 0 0 0 9.749 21h2v2a.76.76 0 0 0 .216.537.74.74 0 0 0 .534.223.76.76 0 0 0 .535-.223.74.74 0 0 0 .216-.537v-2h2A4.76 4.76 0 0 0 20 16.25v-4.5a.76.76 0 0 0-.216-.537.74.74 0 0 0-.535-.223.75.75 0 0 0-.75.76v4.5a3.24 3.24 0 0 1-3.25 3.25h-5.5a3.24 3.24 0 0 1-3.25-3.25v-4.5a.755.755 0 0 0-.469-.707.8.8 0 0 0-.293-.055zM9.5 12.5h6v3.75c0 .147-.102.25-.25.25h-5.5a.24.24 0 0 1-.25-.25zm3 1a.997.997 0 0 0-1 1 .997.997 0 0 0 1 1 .997.997 0 0 0 1-1 .997.997 0 0 0-1-1\" \/><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-20T17:00:12+01:00\">20 May, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">36 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow small\u00a0start-ups can take shape with little money and a big idea\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Demystifying the quick ratio in accounting: understanding its formula, significance, calculation, and how it compares to the Current Ratio.<\/p>\n","protected":false},"author":346,"featured_media":15831,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[6],"tags":[135],"business_type":[4,3],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[],"coauthors":[353],"class_list":["post-15792","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-business-finances","business_type-small-business","business_type-medium-sized-business"],"sage_meta":{"region":"en-gb","author_name":"Stacey McIntosh","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1138451009-4.jpg","imagine_tags":[]},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/15792","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/346"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=15792"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/15792\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/15831"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=15792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=15792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=15792"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=15792"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=15792"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=15792"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=15792"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=15792"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=15792"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=15792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}