Finance CalculatorsBusiness FinanceFree Tool
Quick Ratio Calculator
Calculate your quick ratio (acid-test ratio) - current assets minus inventory, divided by current liabilities - a stricter measure of short-term liquidity.
How to Use Quick Ratio Calculator
- 1Enter your total current assets
- 2Enter your inventory value
- 3Enter your total current liabilities
- 4Click Calculate to see your quick ratio
Frequently Asked Questions
Quick Ratio = (Current Assets minus Inventory) divided by Current Liabilities. It's also called the acid-test ratio because it strips out inventory, which can be slow to convert to cash.
This calculator flags 1.0 or above as good quick liquidity; below 1.0 means the business would need to rely on selling inventory (or other current assets not counted here) to cover short-term liabilities.
This calculator follows the standard quick-ratio definition, which removes inventory only. Receivables are still counted here as a quick asset, on the assumption they can be collected reasonably fast - some analysts use a stricter variant that also excludes receivables, but that's not what this tool computes.
Current Ratio uses all current assets including inventory. Quick Ratio is stricter, deliberately excluding inventory from the numerator.
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