- Open the Quick Ratio Calculator and find the main field: Input.
- Type your values in that field. The placeholder shows an example format (Enter input...).
- Click "Run" to compute the result in your browser.
- Read the result in the Result section. Use Copy to paste the output elsewhere.
Quick Ratio Calculator
The Quick Ratio Calculator, also known as the Acid-Test Ratio Calculator, assesses a co...
Calculator
Enter the values described below, then run. Use Load sample to try a prefilled example when available.
Format hints
Enter input...
How to Use This Tool
Learn More About Quick Ratio Calculator
Quick Ratio Formula
The quick ratio is calculated using the following formula:
Quick Ratio = (Cash and Equivalents + Accounts Receivable) / Current Liabilities
Interpreting Quick Ratio
A quick ratio of 1 or higher generally indicates that a company has enough liquid assets to cover its current liabilities. A ratio below 1 may indicate that a company has liquidity problems.
Limitations of Quick Ratio
The quick ratio does not consider the timing of cash flows or the creditworthiness of a company's customers. It should be used in conjunction with other financial ratios for a comprehensive assessment of liquidity.
About
The Quick Ratio Calculator, also known as the Acid-Test Ratio Calculator, assesses a company's ability to meet its short-term obligations with its most liquid assets. It excludes inventory from current assets, providing a more conservative measure of liquidity.
Examples
Valid values for cash, receivables and liabilities
Input
Input
{"Cash and Equivalents":50000,"Accounts Receivable":30000,"Current Liabilities":40000}Output
Shown in the Result area after you click the action button.
Valid: small numbers
Input
Input
{"Cash and Equivalents":1000,"Accounts Receivable":500,"Current Liabilities":750}Output
Shown in the Result area after you click the action button.
Use Cases
- Assessing a company's short-term liquidity
- Comparing a company's quick ratio to industry averages
- Identifying potential liquidity problems
- Evaluating a company's ability to pay its short-term debts