Quick Ratio Calculator
Test short-term liquidity using only the assets that can be turned into cash quickly to meet current liabilities.
Quick Ratio Calculator
Quick Assets (ticked)
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Current Liabilities
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Alt. Method Ratio
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Cash Ratio
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(Cash + securities) ÷ liabilities
Quick Ratio (ticked assets)
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Formulas
Quick ratio = (Cash + Marketable securities + Receivables) ÷ Current liabilities
Alternative = (Current assets − Inventory − Prepaid) ÷ Current liabilities
Current ratio (for reference) = —
Coverage of current liabilities
Asset Classification
| Asset | Amount (₹) | Ticked as quick | In alt. method | In cash ratio |
|---|
Assumptions & method
- Quick assets are the lines you tick. By default these are cash, marketable securities and receivables; inventory and prepaid expenses are unticked because they are not readily converted to cash.
- Quick ratio = ticked quick assets ÷ current liabilities.
- Alternative method: (total current assets − inventory − prepaid expenses) ÷ current liabilities. It keeps "other current assets", so it differs from the ticked result whenever that line is unticked and non-zero.
- Cash ratio = (cash + marketable securities) ÷ current liabilities, regardless of the ticks.
- Blank fields count as zero. Receivables are taken at the amount you enter, with no adjustment for doubtful debts. Reduce them yourself if some may not be collected.
- The ratio is a snapshot at one date and ignores when each asset converts to cash or when each liability is due. Healthy levels vary by industry.
Results are estimates based on the figures you enter. They are a general liquidity indicator, not a credit decision, a guarantee or advice.
What is the quick ratio?
The quick ratio, or acid-test ratio, asks whether a business could meet its current liabilities using only assets that are already cash or close to it. Inventory is left out because it has to be sold first, often at a discount if time is short, and prepaid expenses are left out because they have already been paid and rarely come back as cash. What remains, usually cash, marketable securities and receivables, is compared with everything due within the year. Because the choice of quick assets is a judgement call, this calculator shows your ticked result next to the subtractive method and a cash ratio, so you can see how much the answer depends on the definition. It is a general liquidity indicator and not a standalone credit decision.