Minimum Quick Ratio Clause Samples
The Minimum Quick Ratio clause sets a required threshold for a company's quick ratio, which measures its ability to meet short-term obligations using its most liquid assets. Typically, this clause applies to financial covenants in loan agreements, requiring the borrower to maintain a quick ratio above a specified minimum, calculated by dividing liquid assets (like cash and receivables) by current liabilities. By enforcing this standard, the clause helps ensure the borrower remains financially stable and capable of repaying debts, thereby reducing the lender's risk.
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Minimum Quick Ratio. Permit the Quick Ratio determined as of the last day of any fiscal quarter of Borrower (commencing with the quarter ending March 31, 2000) to be less than 1.10:1.
Minimum Quick Ratio. The Quick Ratio to be less than 1.50 to 1.00.
Minimum Quick Ratio. Maintain at the end of each fiscal quarter of the Borrower a ratio of (i) the sum of (w) cash on hand or on deposit in any bank or trust company which has not suspended business, (x) Cash Equivalent Investments (without duplication with (w)) and (y) net outstanding amount of accounts receivable to (ii)
Minimum Quick Ratio. The Borrower will maintain Minimum Quick Ratio as of the end of each fiscal quarter of not less than 1.40 to 1.0;
Minimum Quick Ratio. Pursuant to Section 6.3(a)(ii) of the Credit Agreement, as of the Reporting Date, the Companies’ Quick Ratio was _____ : 1.0 which o satisfies o does not satisfy the requirement that ratio must not be less than (i) 1.1 to 1.0 for each fiscal quarter ending from the Closing Date through and including the fiscal quarter ending May 31, 2011 and (ii) 1.25 to 1.0 for each fiscal quarter ending thereafter.
Minimum Quick Ratio. Maintain at the end of each fiscal quarter of the Borrower a ratio of (i) the sum of (w) cash on hand or on deposit in any bank or trust company which has not suspended business, (x) Cash Equivalent Investments (without duplication with (w); provided however that if the amount outstanding under the Loans shall be equal to or greater than $1,000,000, the sum of (w) and (x) shall not exceed $1,000,000 for the purposes of calculating compliance with this ratio) and (y) net outstanding amount of accounts receivable taking into account allowances for doubtful or uncollectible accounts receivable to (ii) (x) Current Liabilities less the sum of (y) the outstanding amount of the Loan (to the extent included in Current Liabilities) and (z) the amount of any deferred revenue of not less than 1.25:1.00. Each item described in clauses (i) and (ii) of this SECTION 5.
Minimum Quick Ratio. The Borrower will not at any time during any period set forth in the table below permit the Quick Ratio to be less than the ratio set forth opposite such period in such table: ------------------------------------------------- PERIOD RATIO ------------------------------------------------- June __, 1998 - last day of 1.00:1.00 the First Fiscal Quarter of 1999 ------------------------------------------------- First day of the Second 0.90:1.00 Fiscal Quarter of 1999- last day of the Second Fiscal Quarter of 2000 ------------------------------------------------- any time thereafter 1.00:1.00 -------------------------------------------------
Minimum Quick Ratio. A ratio of Quick Assets to Current Liabilities of at least 1.50 to 1.00 and after two consecutive fiscal quarters of EBITDA exceeding $250,000 per quarter, then at least 1.25 to 1.00.
Minimum Quick Ratio. At the end of each fiscal quarter, the Borrower will not permit the Quick Ratio to be less than 1.0 to 1.
Minimum Quick Ratio. Maintain, on a consolidated basis, as of the end of each fiscal quarter, a ratio of (i) the sum of the aggregate Cash of Borrowers plus the aggregate amount of Accounts of Borrowers as of such date of determination, to (ii) current liabilities of Borrowers of not less than (a) 1.00 to 1.00 for the fiscal quarters ended September 30, 2010, December 31, 2010, March 31, 2011 and June 30, 2011 and (b) 1.25 to 1.00 for the fiscal quarter ending September 30, 2011 and the last day of each fiscal quarter thereafter.