Quick Ratio Calculator
The acid test: current assets excluding inventory and prepaid items, over current liabilities. What you could actually pay with.
Work it out
Opens on a worked example. Change any line and every figure follows. Cost of goods sold and operating expenses go in before depreciation and amortisation.
Runs entirely in your browser. Nothing you enter is sent to us or stored.
Quick ratio
1.50x
- Quick ratio, receivables over 90 days excluded
- 1.25x
How it is worked out
| Ratio | Formula |
|---|---|
| Quick ratio | (Cash + Marketable securities + Receivables) / Current liabilities |
| Quick ratio, receivables over 90 days excluded | (Cash + Marketable securities + Receivables under 90 days) / Current liabilities |
Cost of goods sold and operating expenses are entered before depreciation and amortisation, which are their own lines.
Related reading
Where the figures behind a ratio come from, and what it takes to trust them.
- Glossary
General Ledger
The general ledger is the master record of an entity's accounts, holding every posted debit and credit by account and period. Subledgers feed it, the chart of accounts defines its structure, and the trial balance is its summary.
- Glossary
Balance Sheet Reconciliation
Balance sheet reconciliation is the practice of reconciling every balance sheet account, not just cash, on a documented schedule with a named owner and risk tier per account. It is the close deliverable auditors test first, and account reconciliation is the technique it applies, account by account.
- Glossary
Variance Analysis
Variance analysis compares an actual result against a benchmark, usually budget, forecast, or prior period, and explains the difference with specific, evidenced causes. It is distinct from flux analysis, which reviews period-over-period fluctuations during the close.
- Free tool
Financial Ratio Calculators
Every ratio from one set of statements.
- Free tool
13-Week Cash Flow Forecast
What a ratio is a snapshot of, week by week.
The formula
Quick ratio = (Cash + Marketable securities + Receivables) / Current liabilities
What the number means
The current ratio with the slow things taken out. The exclusions are the point: inventory because selling it takes time and may take a discount, prepaid expenses because they will never be cash again at all.
Receivables are the questionable inclusion, and the tool asks about them. A receivables balance with a quarter of it over ninety days is not a liquid asset, and a quick ratio computed off gross receivables overstates liquidity by exactly that amount. Enter the aging and the tool shows the ratio on gross and on a haircut basis.
The gap between current ratio and quick ratio is the inventory story, and for a distributor or a manufacturer that gap is the most interesting thing either ratio produces.
A worked example
Two companies with identical current ratios of 1.8 and quick ratios of 1.5 and 0.6, and why only one of them can pay its suppliers next month.
Ratios are downstream
of the close.
Connected accounts, reconciled at zero tolerance, with statements for any period and any entity. Your team approves what the agents propose, and the numbers the ratios come from are ones you can sign.