## How to Use the Quick Ratio Calculator

1. Fill in total cash.
2. Fill in marketable securities.
3. Fill in accounts receivable amount.
4. Fill current liabilities amount.
5. Press Calculate.

## Quick Ratio Defined

A simple view of the liquidity of a company. It can be helpful to compare across multiple financial statements to reveal patterns and possible trajectories of business liquidity.

## Quick Ratio Formula

Calculate the quick ratio using the following formula:

Quick ratio = current assets / current liabilities

You can find the quick assets using the following formula:

Quick assets = cash & equivalents + accounts receivable + marketable securities

## Quick Ratio Example

First, find the current assets on the balance sheet.

Current Assets
Cash & equivalents \$20,000
Accounts receivables \$200,000
Marketable securities \$10,000
Total current assets \$230,000

Next, locate your current liabilities on the balance sheet.

Current Liabilities
Accounts payable \$100,000
Accrued expenses \$20,000
Other short-term liabilities \$5,000
Total current liabilities \$125,000

Once you have found the current assets and current liabilities on the balance sheet, you can calculate the quick ratio.

Quick ratio = current assets / current liabilities

\$230,000 / \$125,000

1.84