Quick Ratio Calculator

Test short-term liquidity without inventory.

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Quick Ratio Calculator

How to use this tool

  1. Enter current assets, inventory and current liabilities.
  2. Press Generate to see the quick ratio.
  3. Compare the result with the current ratio to see what inventory adds.

Worked example

With current assets 50000, inventory 10000 and current liabilities 20000, the quick ratio is (50000 - 10000) / 20000 = 2.00.

What this tool does not do / Limits

This is an estimate from the figures you enter, not financial advice. It excludes inventory on the view that stock is slower to turn into cash, but it still counts receivables that may not all be collected.

Frequently asked questions

What does a quick ratio of 1 mean?

Liquid assets exactly cover current liabilities, with no margin for slow collections.

Why leave inventory out?

Inventory must be sold first, so it is slower to turn into cash than receivables or bank balances.

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