Quick Ratio Calculator
Calculate the quick (acid-test) ratio and cash ratio, which exclude inventory to test immediate liquidity.
Your inputs
Results
Quick ratio
1.4
- Cash ratio (cash + securities only)
- 0.6
✓Exact calculation — rounded only for display
What this calculator does
The quick ratio counts only assets that can be turned into cash quickly — cash, marketable securities and receivables.
Formula and method
Worked example
Calculated by this tool with its default inputs:
Inputs
- Cash and equivalents: 50000 (any currency)
- Marketable securities: 10000 (any currency)
- Accounts receivable: 80000 (any currency)
- Current liabilities: 100000 (any currency)
Results
- Quick ratio: 1.4
- Cash ratio (cash + securities only): 0.6
How to read the results
A quick ratio of at least 1 means liquid assets cover short-term obligations without selling inventory.
Assumptions and limitations
- Receivables should be collectible within the period.
Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.
Questions
Why exclude inventory?
Inventory may take time to sell or may sell below book value in a hurry.
Methodology and verification
- Result type
- Exact mathematical calculation (rounded only for display)
- Formula version
- 1.0
- Automated verification
- 2 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
- Editorial review
- Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.
Privacy
Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Inputs are added to a share link only if you choose to include them. Privacy policy