is a higher quick ratio better 
in general a higher quick ratio is better this is because the formula s numerator the most liquid current assets will be higher than the formula s denominator the company s current liabilities a higher quick ratio signals that a company can be more liquid and generate cash quickly in case of emergency keep in mind that a very high quick ratio may not be better for example a company may be sitting on a very large cash balance this capital could be used to generate company growth or invest in new markets there is often a fine line between balancing short term cash needs and spending capital for long term potential 