Quick Ratio Calculator
Estimate the acid-test ratio using liquid assets and current liabilities.
Calculate quick ratio
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Quick ratio calculator guide
WeCovr's quick ratio calculator estimates the acid-test ratio from cash, receivables, and current liabilities.
What quick ratio means
Quick ratio compares liquid short-term assets with current liabilities, excluding inventory.
Uses cash and receivables.
Excludes less liquid current assets.
Often called the acid-test ratio.
Why it matters
It can give a stricter liquidity view than current ratio when inventory is not easy to convert into cash quickly.
Important limitation
It still does not show collection timing, asset quality, or the exact schedule of liabilities.
Liquidity comparisons
| Measure | Asset base | Typical use |
|---|---|---|
| Current ratio | All current assets | Broad liquidity view |
| Quick ratio | Cash and receivables | Stricter liquidity view |
| Interest coverage | Earnings vs interest | Debt-servicing capacity |
Related WeCovr resources
FAQs
Why is inventory excluded?
Because inventory may not be as easy to convert into cash quickly as cash or receivables.
Is the quick ratio always lower than the current ratio?
Usually, because it uses a narrower asset base.
Can the quick ratio be above 1?
Yes. That means liquid assets exceed current liabilities.
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