How to Use the Quick Ratio Calculator
- Fill in total cash.
- Fill in marketable securities.
- Fill in accounts receivable amount.
- Fill current liabilities amount.
- 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
How to find 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