Finance tools
Quick ratio calculator
Free quick ratio calculator, acid test ratio calculator, and liquidity ratio calculator for your balance sheet. Enter totals or line-item quick assets for a live ratio with step-by-step balance sheet inputs, liquidation cushion in dollars, and current ratio vs quick ratio comparison — then export CSV or PDF (works with Excel).
What this quick ratio calculator does
The quick ratio (also called the acid-test ratio) measures whether a company can pay current liabilities using quick assets — balance-sheet items you can convert to cash quickly without selling inventory. This balance sheet calculator supports two input styles: balance sheet totals (current assets minus inventory and prepaid) or line items (cash, marketable securities, and net accounts receivable).
Unlike thin SERP calculators that only show a ratio, you also get quick assets in dollars, a liquidation cushion (surplus or shortfall vs liabilities), interpretation bands, and an optional current ratio row — plus CSV/PDF export you can open in Excel.
Dual input modes
Totals from your balance sheet or detailed cash, securities, and receivables — matches how lenders and accountants work.
Dollar cushion
See quick assets minus current liabilities — not just a ratio — for cash planning.
Current vs quick
Side-by-side comparison when you enter current assets and inventory in totals mode.
Export
Download a summary as CSV or print-friendly PDF after the optional email step.
How to use the quick ratio calculator
Open your balance sheet
Use the most recent statement — interim or year-end — with current assets and current liabilities.
Choose input mode
Totals mode: enter current assets, inventory, and prepaid. Detailed mode: enter cash, marketable securities, and net A/R.
Enter current liabilities
Include accounts payable, short-term debt, accrued expenses, and other obligations due within one year.
Read results and export
Quick ratio, cushion dollars, interpretation band, and optional current ratio comparison. Export CSV or PDF if needed.
Quick ratio formula (acid-test)
Component method (line items)
Quick ratio = (Cash + Cash equivalents + Marketable securities + Net A/R) ÷ Current liabilitiesUse when you have separate quick-asset lines. Marketable securities are short-term investments due within about one year.
Subtraction method (totals)
Quick ratio = (Current assets − Inventory − Prepaid) ÷ Current liabilitiesToggle prepaid exclusion off to match sources that subtract only inventory: (Current assets − Inventory) ÷ Current liabilities.
Quick ratio vs current ratio
Both are liquidity ratios, but the current ratio includes all current assets (including inventory). The quick ratio is more conservative because inventory may take time to sell and may need to be discounted.
Calculate the full current ratio and working capital on our current ratio calculator, then compare both metrics side by side.
| Current ratio | Quick ratio | |
|---|---|---|
| Formula | Current assets ÷ Current liabilities | Quick assets ÷ Current liabilities |
| Inventory | Included | Excluded |
| Prepaid expenses | Included | Often excluded |
| Typical use | Broad liquidity view | Near-term, conservative view |
What is a good quick ratio?
A quick ratio of 1.0 means you have about $1 of quick assets for each $1 of current liabilities. Many lenders and analysts prefer 1.0 to 1.5 as a comfortable zone, but industry norms vary — retailers and restaurants often run lower; service and SaaS firms may run higher.
| Ratio band | Typical reading |
|---|---|
| Below 0.5 | Critical — limited liquid coverage |
| 0.5 – 1.0 | Caution — may struggle without inventory sales |
| 1.0 – 1.5 | Adequate for many industries |
| 1.5 – 3.0 | Strong liquidity buffer |
| Above 3.0 | Very high — possible excess idle cash |
Cash ratio vs quick ratio vs current ratio
Lenders and analysts often compare three liquidity ratios from the same balance sheet. The cash ratio is the strictest (cash only). The quick ratio adds receivables and marketable securities. The current ratio includes inventory and prepaid items.
This calculator focuses on the quick (acid-test) ratio and shows current ratio when you enter totals with inventory. For a dedicated current ratio and working capital view, use our current ratio calculator.
| Ratio | Typical formula | What it stresses |
|---|---|---|
| Cash ratio | (Cash + equivalents) ÷ Current liabilities | Immediate cash to pay bills |
| Quick ratio (acid test) | Quick assets ÷ Current liabilities | Near-cash assets without selling inventory |
| Current ratio | Current assets ÷ Current liabilities | All short-term assets vs obligations |
How to improve your quick ratio
Collect receivables faster
Tighten payment terms, invoice promptly, and follow up on overdue A/R to raise quick assets without adding inventory.
Manage inventory leanly
Quick ratio excludes inventory — but lower inventory with steady sales often signals healthier operations and frees cash.
Reduce short-term liabilities
Pay down lines of credit, negotiate supplier terms, or refinance short-term debt when rates and covenants allow.
Retain prudent cash buffers
Build cash and marketable securities for seasonal dips — compare your ratio to prior periods, not a single industry average.
If hiring is part of your cash plan, model employer burden with our employee cost calculator before committing to new payroll.
Where to find numbers on your balance sheet
Current assets: Cash, receivables, inventory, prepaid expenses, and other assets due within one year.
Cash and equivalents: Checking, petty cash, and money-market balances.
Marketable securities: Short-term bonds, T-bills, or investments labeled due within one year.
Accounts receivable: Use net A/R (after allowance for doubtful accounts).
Current liabilities: Accounts payable, short-term loans, income tax payable, accrued wages, and other near-term obligations. For hiring cost context, see our employee cost calculator.
Quick ratio example
A manufacturer reports $48,000 cash, $74,000 marketable securities, and $139,000 net accounts receivable. Current liabilities are $115,000.
Quick assets = $48,000 + $74,000 + $139,000 = $261,000
Quick ratio = $261,000 ÷ $115,000 ≈ 2.27x — well above 1.0, with about $146,000 liquidation cushion ($261,000 − $115,000).
Enter the same figures in Line items mode to reproduce this result in the calculator.
Limitations
This tool uses book values from your inputs. It does not adjust for restricted cash, off-balance-sheet obligations, or seasonality beyond what you enter. Results are illustrative — not a loan approval, audit, or covenant certification.
For debt schedules and loan payments, use the amortization schedule calculator. This page does not model multi-year liquidity trends or automated cash-ratio mode — see the cash vs quick vs current comparison above for ratio definitions.
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Frequently asked questions about Quick ratio calculator
What is the quick ratio (acid-test ratio)?
The quick ratio measures how well a company can cover current liabilities with quick assets — cash, cash equivalents, marketable securities, and accounts receivable — without relying on selling inventory. It is a common liquidity ratio for short-term solvency checks.
How do you calculate quick ratio?
Either add quick asset line items and divide by current liabilities, or subtract inventory (and often prepaid expenses) from current assets, then divide by current liabilities. This calculator supports both methods with live results.
What is the quick ratio formula?
Component: (Cash + Equivalents + Marketable securities + Net A/R) ÷ Current liabilities.
Subtraction: (Current assets − Inventory − Prepaid) ÷ Current liabilities.
What is a good quick ratio?
Many analysts treat 1.0 as a minimum safety level and 1.0–1.5 as healthy for general businesses. Retail and restaurant operators may run lower by design; capital-light services may run higher. Compare to your industry and prior periods.
Quick ratio vs current ratio — what's the difference?
The current ratio uses all current assets (including inventory). The quick ratio excludes inventory and often prepaid expenses, giving a stricter view of near-term liquidity. Use both together to see how much liquidity depends on inventory — start with our current ratio calculator.
Why exclude inventory from the quick ratio?
Inventory can take time to sell and may require discounts. The acid-test ratio assumes you cannot quickly convert inventory to cash to pay creditors, so it is excluded from quick assets.
Should prepaid expenses be excluded?
Many sources exclude prepaid expenses because you cannot use them directly to pay creditors. Some calculators (and lenders) subtract only inventory. Use the prepaid toggle in totals mode to match your method.
Do accounts receivable count in the quick ratio?
Yes — net accounts receivable (after allowance for doubtful accounts) is a standard quick asset. Collection risk still matters; slow-paying customers can overstate liquidity if receivables quality is weak.
What does a quick ratio of 1.5 mean?
A 1.5x quick ratio means you have about $1.50 of quick assets for each $1 of current liabilities — a 50% cushion above the 1.0 safety threshold. Many analysts treat 1.0–1.5 as a healthy band for general businesses, though retailers and manufacturers may legitimately run lower.
What is the difference between cash ratio and quick ratio?
The cash ratio uses only cash and cash equivalents divided by current liabilities. The quick ratio also includes marketable securities and net accounts receivable — a broader but still conservative view than the current ratio, which includes inventory.
How do you calculate quick ratio from a balance sheet?
From your statement: (1) find current liabilities; (2) either subtract inventory and prepaid from current assets, or add cash, marketable securities, and net A/R; (3) divide quick assets by current liabilities. This calculator updates live as you type — no separate calculate button.
Can I export quick ratio results to Excel?
Yes. Use Export CSV after the optional email step — open the file in Excel or Google Sheets. PDF export is available for print-friendly summaries. Exports include inputs, quick ratio, cushion dollars, and interpretation.
What does a quick ratio below 1 mean?
A ratio below 1.0 means quick assets do not fully cover current liabilities without selling inventory or raising cash. It may signal liquidity pressure, though some industries operate below 1.0 by design.
Can a quick ratio be too high?
Very high ratios (for example above 3.0) can indicate excess idle cash or underinvestment. Strong liquidity is positive, but compare to growth plans, debt covenants, and industry peers before treating high ratios as uniformly good.