Name: Quick Ratio

Definition: The quick ratio is like an emergency response measure: can the company pay off short-term debts without selling any inventory? It only counts cash, short-term investments, and receivables — assets that can quickly be turned into cash. A healthy quick ratio shows strong liquidity. A very low quick ratio means the company depends on selling inventory to meet short-term obligations — which can be risky if sales unexpectedly slow down.

Interpretation:
• In '2021', JL's quick ratio was 1.29, providing a stringent test of short-term liquidity. Industry average for Clothing/Shoe/Accessory Stores in '2021' stood at 0.95.
• In '2022', JL's quick ratio was 1.40, providing a stringent test of short-term liquidity. The increase since '2021' reflects strengthening financial performance. Industry average for Clothing/Shoe/Accessory Stores in '2022' stood at 0.73. Industry average declined by 0.23 from previous year.
• In '2023', JL's quick ratio was 1.51, providing a stringent test of short-term liquidity. The increase since '2022' reflects strengthening financial performance. Industry average for Clothing/Shoe/Accessory Stores in '2023' stood at 0.61. Industry average declined by 0.12 from previous year.
• In '2024', JL's quick ratio was 1.54, providing a stringent test of short-term liquidity. The increase since '2023' reflects strengthening financial performance. Industry average for Clothing/Shoe/Accessory Stores in '2024' stood at 0.65. Industry average increased by 0.04 compared to previous year.
Overall, JL's quick ratio has steadily improved over the past 4 years.

Formula: Quick Ratio = (Current Assets - Inventory) / Current Liabilities

Good Range: Normally between 0.8 and 1.5.