Quick Ratio Calculator
What is Quick Ratio Calculator?
Calculate a company’s quick ratio, also known as the acidtest ratio, which measures a company’s ability to meet shortterm financial obligations.
Formula
Quick ratio = (C + S + AR) / CL
Where:

C = Cash and Cash Equivalents

S = Marketable Securities

AR = Accounts Receivable

CL = Current Liabilities
Example
Let’s say a company has $10,000 in cash, $5,000 in marketable securities, $2,000 in accounts receivable, and $8,000 in current liabilities. The Quick Ratio Calculator formula would be:
Quick ratio = ($10,000 + $5,000 + $2,000) / $8,000 Quick ratio = 1.88
This means the company has 1.88 dollars of liquid assets available to cover every dollar of current liabilities.
How to Calculate
To use the Quick Ratio Calculator, you simply need to input the values for cash and cash equivalents, marketable securities, accounts receivable, and liabilities into the corresponding input fields. Once all the inputs are entered, click the “Calculate Quick Ratio” button, and the calculator will display the calculated quick ratio.
FAQs
What is a good quick ratio? A good quick ratio is typically considered to be 1 or higher. This indicates that the company has enough liquid assets to cover its current liabilities.
How is the quick ratio calculated?
The quick ratio is calculated by adding together a company’s cash, marketable securities, and accounts receivable, and then dividing that sum by its current liabilities. The formula for the quick ratio is: Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.
Why is the quick ratio important?
The quick ratio is important because it provides insight into a company’s ability to pay its shortterm debts without having to sell its inventory or other assets. A high quick ratio indicates that a company has enough liquid assets to cover its current liabilities, while a low quick ratio may indicate that a company is facing financial difficulty and may struggle to meet its shortterm obligations.