Quick Ratio Calculator
Calculate the quick ratio (acid-test ratio) to measure a company's ability to meet short-term obligations using its most liquid assets.
How to Use the Quick Ratio Calculator
- Enter cash and cash equivalents.
- Enter accounts receivable.
- Enter marketable securities.
- Enter current liabilities.
- Click Calculate to see quick ratio and interpretation.
Casi d'Uso
- •Assessing short-term liquidity of a business.
- •Comparing liquidity across companies in the same industry.
- •Monitoring liquidity before credit applications.
- •Evaluating financial health in due diligence.
Formula
Quick ratio = (cash + receivables + marketable securities) / current liabilities.
Domande Frequenti
What is the quick ratio?
The quick ratio measures whether a company can cover its current liabilities with its most liquid assets, excluding inventory.
What is a good quick ratio?
A quick ratio of 1.0 or above means the company can cover short-term liabilities without selling inventory. Below 1.0 indicates liquidity risk.
How does quick ratio differ from current ratio?
The quick ratio excludes inventory and prepaid expenses, making it a stricter liquidity measure than the current ratio.