Quick ratio

The current ratio with inventory removed, on the argument that stock is the current asset least likely to convert to cash quickly when it is needed.

The distributor drops from 1.77 to 0.99 once its ₹780 crore of inventory comes out. That gap is the whole point of computing both.

A wide divergence between the two ratios says the company's short-term safety depends on selling stock. For a jeweller that is normal. For a pharmaceutical distributor with expiring product it is a different conversation.

Some versions also strip prepaid expenses. The refinement rarely changes a decision.