Quick Ratio Calculator
Determine your company's Quick Ratio accurately. Filter out difficult-to-sell inventory and discover if your business can meet its 90-day liabilities.
Quick Ratio Calculator
Determine your company's Quick Ratio accurately. Filter out difficult-to-sell inventory and discover if your business can meet its 90-day liabilities.
How to Use Quick Ratio Calculator in 3 Easy Steps
1
Step 1
Obtain your Total Current Assets from the corporate balance sheet.
2
Step 2
Subtract your Total Inventory and Prepaid Expense values (the non-liquid elements).
3
Step 3
Divide by your Current Liabilities to evaluate your 90-day survival quotient.
Frequently Asked Questions
Prepaid expenses (like paying 6 months of rent in advance) cannot be easily converted back into cash holding value to pay off other immediate debts, thus they are removed from "Quick" assets.
Yes, in service-oriented or SaaS companies. If a company sells software subscriptions and carries literally zero physical inventory, its Quick and Current Ratios will be identical mathematically.
Common catalysts include aggressive cash purchases of equipment, buying back excessive company stock, or extending overly generous credit terms to customers (bloating receivables while draining cash).