What is the Quick Ratio?

Quick Ratio (also called Acid-Test Ratio) measures a company's ability to pay short-term obligations with its most liquid assets. Formula: (Current Assets - Inventory) ÷ Current Liabilities. It excludes inventory which is slower to convert to cash.

What is a good Quick Ratio?

Generally: >1.0 is healthy, 0.5-1.0 is cautionary, <0.5 indicates liquidity crisis. However, standards vary by industry — retail typically has lower ratios.

Quick Ratio vs Current Ratio?

Current Ratio = Current Assets ÷ Current Liabilities (includes inventory). Quick Ratio excludes inventory, making it a more conservative liquidity measure since inventory takes longer to liquidate.

Quick Ratio Calculator - Liquidity Analysis

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Free online Quick Ratio (Acid-Test Ratio) Calculator. Input current assets, inventory, and current liabilities to assess short-term liquidity. 100% client-side computation.

Zero dependencies · Works offline

📋 Input Parameters

Current Assets ($)

Inventory ($)

Current Liabilities ($)

📖 About Quick Ratio

Quick Ratio = (Current Assets - Inventory) ÷ Current Liabilities. It excludes slower-to-liquidate inventory for a more conservative liquidity assessment.

Benchmarks: >1.0 Healthy | 0.5-1.0 Caution | <0.5 Crisis. ⚠️ Standards vary by industry; retail typically lower.

🧪 Quick Ratio Calculator

📋 Input Parameters

📖 About Quick Ratio