Quick Ratio Calculator
Calculate the quick ratio (acid-test ratio) to measure immediate liquidity without relying on inventory.
Quick Assets (Liquid)
$50,000
$0$1,000,000
$25,000
$0$500,000
$75,000
$0$1,000,000
Other Current Assets
$100,000
$0$1,000,000
$10,000
$0$100,000
Liabilities
$125,000
$1,000$1,000,000
Quick Ratio (Acid-Test)
1.20
Strong short-term liquidity
Current Ratio
2.08
Includes inventory
Cash Ratio
0.60
Most conservative
Quick Assets
$150,000
Current Liabilities
$125,000
Ratio Comparison
Cash Ratio0.60
Quick Ratio1.20
Current Ratio2.08
Inventory impact: 0.88 difference between current and quick ratio
Quick Ratio Benchmarks
Below 0.5Critical
0.5 - 1.0Concerning
1.0 - 1.5Healthy
Above 2.0Very Strong
Quick Ratio Formula
Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities
Why Exclude Inventory?
Inventory may not be quickly convertible to cash, especially during financial stress. The quick ratio measures immediate liquidity.
Quick vs Current Ratio
A large gap between ratios suggests heavy inventory dependence. This may be normal for retail/manufacturing but concerning for service companies.