Quick Ratio Calculator
Calculate your company’s quick ratio (acid-test ratio) to measure liquidity. The quick ratio measures the ability to meet short-term obligations with its most liquid assets.
Step 1: Liquid Assets
What are Liquid Assets?
Liquid assets are assets that can be quickly converted to cash without significant loss of value. These include cash, marketable securities, and accounts receivable.
Step 2: Current Liabilities
About Current Liabilities
Current liabilities are debts or obligations that are due within one year. These include accounts payable, short-term loans, and other accrued expenses.
Quick Ratio Results
Quick Ratio (Acid-Test Ratio)
Industry Quick Ratio Comparison
| Industry | Average Quick Ratio | Your Ratio | Status |
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Liquid Assets Breakdown
Quick Ratio Formula
Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities
The quick ratio excludes inventory from current assets because inventory may not be as easily converted to cash. A ratio above 1 indicates the company can pay its current liabilities without selling inventory.
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