1
Enter quick assets
Add cash, cash equivalents, marketable securities, and collectible accounts receivable.
Free startup finance tool
Quick Ratio Calculator
The quick ratio, also called the acid-test ratio, measures whether a business can cover current liabilities with cash, marketable securities, and accounts receivable—without relying on inventory sales.
Balance sheet inputs
Use values from the same reporting date.
Your result
Strong short-term liquidity
Quick ratio
1.50x
($30,000 + $5,000 + $40,000) ÷ $50,000
Quick assets
$75,000
Current ratio
2.30x
Quick asset cushion
$25,000
Less-liquid asset share
34.8%
Quick assets cover current liabilities with a meaningful cushion. Compare this result with your industry and the timing of receivable collections.
Inventory and prepaid expenses add 0.80x to the current ratio, showing how much the broader measure depends on less-liquid assets.
Formula explained
How to calculate quick ratio
Quick ratio = (cash + marketable securities + accounts receivable) ÷ current liabilities.
2
Add other current assets
Enter inventory and prepaid expenses to compare the quick ratio with the broader current ratio.
3
Enter current liabilities
Use obligations due within one year, such as accounts payable and short-term debt.
4
Review liquidity
Compare the ratios, asset mix, and interpretation with your industry and cash-flow timing.
Common questions
Quick ratio FAQ
What is the quick ratio?
The quick ratio measures whether cash, marketable securities, and accounts receivable can cover current liabilities without selling inventory.
What is the quick ratio formula?
Quick ratio equals cash and cash equivalents plus marketable securities plus accounts receivable, divided by current liabilities.
What is a good quick ratio?
A quick ratio of 1.0 means quick assets equal current liabilities. What counts as good varies by industry, cash cycle, and receivable quality.
Why does the quick ratio exclude inventory?
Inventory can take time to sell and may not convert to cash at its recorded value, so the quick ratio focuses on more liquid assets.
How is quick ratio different from current ratio?
The current ratio includes all current assets. The quick ratio excludes inventory and prepaid expenses to provide a stricter liquidity test.
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