Test liquidity excluding inventory, which cannot always be converted to cash quickly.
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.
Quick Ratio
Quick Ratio = Current assets excluding inventory ÷ Current liabilities
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.
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.
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.