Quick Ratio Calculator
Calculate quick ratio to measure a company's short-term liquidity and financial health
Financial Details
Ready to Calculate
Enter your financial data to calculate the quick ratio and assess liquidity.
How to Use the Quick Ratio Calculator
Enter Quick Assets
Input your company's cash and cash equivalents, marketable securities, and accounts receivable. These are the assets that can be quickly converted to cash within 90 days or less.
Enter Current Liabilities
Provide the total current liabilities, which are obligations due within one year or operating cycle. This includes accounts payable, short-term debt, and accrued expenses.
Get Instant Analysis
The calculator immediately computes the quick ratio and provides an interpretation of the company's liquidity position. Higher ratios indicate better short-term liquidity.
Understand the Results
Review the asset breakdown to see how different quick assets contribute to the total. The ratio interpretation helps assess whether the company has adequate liquidity for its short-term obligations.
Compare with Industry Standards
Use the ratio interpretation as a benchmark. Different industries have different acceptable quick ratio ranges, so consider industry norms when evaluating the results.
Share Your Analysis
Use the share feature to save your calculations or share financial analysis with colleagues, investors, or stakeholders. Perfect for business planning and financial reporting.
Quick Ratio Tips & Best Practices
Quick ratio excludes inventory from current assets, making it a more conservative measure than current ratio
A quick ratio above 1.0 generally indicates good short-term liquidity
Different industries have different acceptable quick ratio ranges - compare with industry peers
Quick ratio is also known as acid-test ratio due to its strict liquidity measurement
Monitor quick ratio trends over time to identify improving or deteriorating liquidity
Companies with high quick ratios may be holding excess cash that could be invested elsewhere
Very low quick ratios may indicate potential cash flow problems or over-reliance on inventory
Quick ratio is particularly important for companies with slow inventory turnover
Use quick ratio alongside other liquidity ratios for comprehensive financial analysis
Seasonal businesses may show significant quick ratio fluctuations throughout the year