Quick Ratio Calculator

Test liquidity excluding inventory, which cannot always be converted to cash quickly.

About Quick Ratio Calculator

The ratio divides one figure by the other and is read against a conventional benchmark of 1. Both the ratio and its percentage form are shown, because different audiences expect different presentations of the same number. A acid-test ratio compresses two absolute figures into one comparable number, which is what makes it usable across companies and periods of different size.

Formula

Quick Ratio

Quick Ratio = Current assets excluding inventory ÷ Current liabilities

Current assets excluding inventory: Numerator of the ratio
Current liabilities: Denominator of the ratio

Worked example

With the default values below, Quick Ratio Calculator returns Quick Ratio of 1.071. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current assets excluding inventoryminimum 0: 300,000
Current liabilitiesminimum 0: 280,000

Results

Quick Ratio: 1.071
Expressed as a Percentage: 107.14%
Surplus Over the Benchmark: 0.071
Inverse Ratio: 0.933
Interpretation: Adequate — at or above the benchmark of 1

Step by step

1Values used
2Quick Ratio
3Quick Ratio= 1.071
4Expressed as a Percentage= 107.14
5Surplus Over the Benchmark= 0.071
6Inverse Ratio= 0.933
7Interpretation= Adequate — at or above the benchmark of 1

Assumptions and limits

The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Quick Ratio calculated?

Quick Ratio = Current assets excluding inventory ÷ Current liabilities The ratio divides one figure by the other and is read against a conventional benchmark of 1. Both the ratio and its percentage form are shown, because different audiences expect different presentations of the same number.

Why does Quick Ratio matter?

A acid-test ratio compresses two absolute figures into one comparable number, which is what makes it usable across companies and periods of different size.

What values do I need to enter?

This calculator takes 2 inputs: Current assets excluding inventory, Current liabilities. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.