A contractor's ability to pay current liabilities without having to convert non-cash assets to cash is measured by the quick ratio. The formula for computation is� (cash + receivables) / current liabilities. As a result, unlike the current ratio, the quick ratio excludes assets such as prepaids, inventories, and underbillings. Without selling goods, a contractor with a lower quick�ratio may not be able to meet their obligations. A high quick ratio indicates ineffective cash management.�
iscover the top construction industry organizations to join in 2025. From AGC and ABC to NAHB and CFMA, this guide breaks down the benefits of each group, helping contractors, subcontractors, and professionals grow their network, stay informed, and gain industry support.
Read MoreDiscover the top 10 accounting practices every homebuilder needs for profitability and growth, from stable Charts of Accounts to automated AP processes. RedHammer provides expert guidance and customized solutions to streamline your financial operations and enhance profitability.
Read MoreRedHammer helps homebuilders stabilize their financial operations, implement accurate job costing, streamline subcontractor and billing processes, and integrate financial and project management systems to improve visibility, reduce risk, and drive long-term growth.
Read MoreThe construction industry faces a persistent labor shortage in early 2025, with an estimated 439,000 additional workers needed. Contractors struggle to find skilled labor, leading to rising wages, project delays, and cost increases. Workforce development and immigration policies will be key to addressing this challenge.
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