Quick Ratio Calculator

About this calculator

The quick ratio, also called the acid-test ratio, measures a company's ability to cover short-term liabilities using only its most liquid assets: (cash + marketable securities + accounts receivable) ÷ current liabilities — deliberately excluding inventory, which can be slow or difficult to convert to cash.

Accountants, lenders, and investors use it as a stricter check than the current ratio when assessing financial health, since a company sitting on a lot of unsold inventory can look solvent by the current ratio while actually struggling to pay bills due in the next few weeks; a quick ratio at or above 1.0 is generally considered healthy.