Quick Ratio Calculator
Assess short-term liquidity by comparing quick assets to current liabilities.
CalcSimpler Examples
- Cash 20000, Marketable Securities 5000, Accounts Receivable 15000, Current Liabilities 40000 ⇒ 1
- Cash 10000, Marketable Securities 2000, Accounts Receivable 8000, Current Liabilities 30000 ⇒ 0.67
FAQ
What does a quick ratio above 1 indicate?
The company can cover its current liabilities without selling inventory.
Are inventory and prepaid expenses included?
No, only the most liquid assets are counted.
How is it different from the current ratio?
The quick ratio excludes inventory and other less liquid current assets.
Can the quick ratio be negative?
Yes, if liabilities exceed quick assets, the ratio falls below zero.
Additional Information
- Also called the acid-test ratio.
- A value below 1 may signal liquidity problems.
CalcSimpler