Enter your company's cash and cash equivalents, marketable securities, accounts receivable, and total current liabilities to calculate your Quick Ratio (also known as the acid-test ratio). You'll get your quick ratio value plus an interpretation of what it means for your company's short-term liquidity.
Quick Ratio
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Total Liquid Assets
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Liquidity Assessment
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Liquidity Surplus / Deficit
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The quick ratio, also called the acid-test ratio, measures a company's ability to meet its short-term obligations using only its most liquid assets — cash, marketable securities, and accounts receivable. Unlike the current ratio, it excludes inventory and other less-liquid assets, making it a stricter test of financial health.
The quick ratio formula is: Quick Ratio = (Cash & Cash Equivalents + Marketable Securities + Accounts Receivable) ÷ Total Current Liabilities. A result above 1.0 means your liquid assets exceed your short-term obligations. Simply enter your balance sheet figures into this calculator to get your result.
A quick ratio of 1.0 or higher is generally considered healthy, meaning the company has enough liquid assets to cover its current liabilities. A ratio between 1.0 and 2.0 is typically ideal. Ratios below 1.0 may signal liquidity risk, while very high ratios might indicate excess idle cash that isn't being put to productive use.
Both ratios measure short-term liquidity, but the current ratio includes all current assets (including inventory and prepaid expenses), while the quick ratio excludes them. Because inventory can be difficult to convert to cash quickly, the quick ratio is considered a more conservative and reliable measure of immediate liquidity.
The quick ratio rises when liquid assets (cash, receivables, marketable securities) grow faster than current liabilities — for example, through strong sales collections or reduced short-term debt. It falls when liabilities grow faster, cash is tied up in inventory, or receivables become harder to collect. Seasonal business cycles can also cause fluctuations.
The quick ratio is preferred when you want a conservative, worst-case view of liquidity. It's especially useful for businesses with large inventory balances that may not be quickly convertible to cash. Lenders, investors, and analysts often use it alongside the current ratio to get a fuller picture of a company's financial position.
Include cash and cash equivalents (bank balances, money market funds), short-term marketable securities (stocks or bonds easily sold), and net accounts receivable. Exclude inventory, prepaid expenses, and other illiquid current assets. Your balance sheet is the best source for these figures.