Input Values
Currency agnosticResult
Quick Ratio
—
Assessment
Enter inputs
≥ 1.0 often indicates adequate short‑term coverage
< 1.0 may signal potential liquidity pressure
Components Summary
| Quick assets (numerator) | — |
|---|---|
| Current liabilities (denominator) | — |
Scenario Table
| # | Name | Quick Assets | Current Liabilities | Quick Ratio | Mode | Notes |
|---|---|---|---|---|---|---|
| 1 | Alpha Co | 55,000 | 40,000 | 1.38 | direct | Baseline |
| 2 | Bravo Ltd | 22,500 | 35,000 | 0.64 | direct | Watchlist |
| 3 | Charlie Inc | 80,000 | 60,000 | 1.33 | derived | Seasonal |
| 4 | Delta Corp | 15,000 | 15,000 | 1.00 | direct | Threshold |
| 5 | Echo PLC | 120,000 | 75,000 | 1.60 | derived | Strong |
Quick Ratio Chart
Auto updates from tableFormula Used
Two equivalent approaches are provided:
- Direct components: Quick Ratio = (Cash & Cash Equivalents + Marketable Securities + Accounts Receivable + Other Quick Assets) ÷ Current Liabilities
- From current assets: Quick Ratio = (Current Assets − Inventory − Prepaid Expenses − Other Non‑quick Current Assets) ÷ Current Liabilities
Quick assets intentionally exclude inventory and prepayments because they are less readily convertible to cash within a very short horizon.
How to Use This Calculator
- Select Direct components to input cash, securities, receivables, and optional other quick assets; or choose From current assets to start from a total and subtract non‑quick items.
- Enter Current liabilities covering payables, short‑term borrowing, accrued items, and current maturities of long‑term debt.
- Click Calculate Quick Ratio to display the ratio and an assessment using common thresholds.
- Use Save to Table to capture the scenario, then Export CSV or Export PDF for reporting.
- Review the chart to compare scenarios visually; it updates from the scenario table.
Frequently Asked Questions
Commonly, ≥ 1.0 suggests quick assets can cover near‑term obligations. However, acceptable levels vary by industry, seasonality, and access to credit. Compare with sector peers and trends.
The current ratio includes all current assets, while the quick ratio excludes inventory and prepaids to focus on assets that can convert to cash very quickly.
Yes. Use receivables net of allowance for doubtful accounts to avoid overstating liquidity.
Include any bank overdrafts and revolving credit balances that require near‑term repayment within current liabilities.
If current liabilities are truly zero, the ratio is undefined or tends to infinity. Practically, present the numerator and use qualitative judgment rather than a numeric ratio.
No. The ratio looks only at balance‑sheet amounts. Disclose unused facilities separately; they improve overall liquidity but are not part of the formula.
Use the most recent balance‑sheet date. For trend analysis, compute the ratio for multiple periods and examine direction and seasonality.