Enter your current cash, equity, other assets, and total dept you owe to find out your quick ratio!
Other Accounts Receivable (if any):
What is a Quick Ratio?
The Quick Ratio, also known as the Acid-Test Ratio, is a financial ratio used to measure a company's ability to pay its short-term liabilities using its liquid assets. It is a more conservative measure of liquidity than the current ratio, as it excludes inventory from the calculation, which may be difficult to liquidate quickly in the event of financial difficulty. Use the free calculator above to learn your quick ratio today.
How is a Quick Ratio calculated?
The Quick Ratio is calculated by dividing a company's quick assets (cash, marketable securities, and accounts receivable) by its current liabilities (debts due within one year). The formula for the Quick Ratio is:
Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities
A higher Quick Ratio indicates that a company has a better ability to meet its short-term obligations using its liquid assets, while a lower Quick Ratio may indicate that a company may struggle to pay its short-term debts without having to liquidate its inventory. The acceptable range for the Quick Ratio varies depending on the industry and company, but a ratio of at least 1:1 is generally considered good.