Quick Ratio CalculatorFree online financial calculator — instant results, no sign-up
Measure liquid asset coverage of current liabilities excluding inventory and prepayments.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Quick Ratio Calculator
The Quick Ratio Calculator measures how much cash, marketable securities, and net receivables a business has available relative to its current liabilities. It excludes inventory and prepayments to focus on assets that are generally more readily available to meet short-term obligations. Using the default inputs, it reports quick assets of $115,000.00 and a quick ratio of 1.2778.
- Cash ($)
- Cash is the business's available cash balance, entered in dollars.
- Marketable securities ($)
- Marketable securities are short-term investments readily convertible to cash, entered in dollars.
- Net receivables ($)
- Net receivables are amounts owed by customers after allowances for uncollectible accounts, entered in dollars.
- Current liabilities ($)
- Current liabilities are obligations generally due within one year or the normal operating cycle, entered in dollars.
Formula and method
QA = C + MS + NR; QR = QA / CL = (C + MS + NR) / CL. With the default inputs: QA = $40,000 + $15,000 + $60,000 = $115,000.00; QR = $115,000 / $90,000 = 1.2778, rounded to four decimal places.
- QAQuick assets, in dollars.
- CCash, in dollars.
- MSMarketable securities, in dollars.
- NRNet receivables, in dollars.
- CLCurrent liabilities, in dollars.
- QRQuick ratio, a unitless measure of quick assets per dollar of current liabilities.
Add cash, marketable securities, and net receivables to obtain quick assets. Divide that total by current liabilities, provided current liabilities are greater than zero. Display quick assets to two decimal places and the quick ratio to four decimal places, rounding only for presentation.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Cash40000 $
- Marketable securities15000 $
- Net receivables60000 $
- Current liabilities90000 $
Results
- Quick assets$115,000.00
- Quick ratio1.2778
How to use the Quick Ratio Calculator
- 1Gather cash, marketable securities, net receivables, and current liabilities from financial records for the same reporting date.
- 2Enter cash and marketable securities in dollars; the default values are $40,000 and $15,000.
- 3Enter net receivables after allowances for uncollectible accounts; the default is $60,000. Do not include inventory or prepayments.
- 4Enter current liabilities in dollars; the default is $90,000, and the denominator must be greater than zero for a meaningful ratio.
- 5Review the quick-assets total and quick ratio. With the defaults, these are $115,000.00 and 1.2778.
Reading your result
The Quick assets output is the combined dollar value of cash, marketable securities, and net receivables: $115,000.00 with the defaults. The Quick ratio output expresses that total relative to current liabilities: 1.2778 means approximately $1.28 of quick assets for each $1 of current liabilities. A ratio of 1 means the totals are equal; above 1 indicates quick assets exceed current liabilities, while below 1 indicates they fall short. These comparisons do not establish whether payments can actually be made on time.
Limitations
This is a balance-sheet snapshot, not a cash-flow forecast or a guarantee of solvency. It assumes the included cash is available, securities can be sold promptly near their entered values, and net receivables are collectible. Receivable collection dates may not align with liability due dates, and restricted cash or illiquid investments can overstate practical coverage. Appropriate ratios vary by industry, seasonality, and business model. Use consistent reporting dates and currency, avoid double-counting assets, and exclude inventory and prepayments. Zero current liabilities make the ratio undefined, while negative current liabilities generally make it unsuitable for liquidity interpretation.
Common questions
Why does the Quick Ratio Calculator exclude inventory and prepayments?+
Inventory may take time to sell and may not realize its recorded value. Prepayments typically provide future goods or services rather than cash available to pay liabilities, so neither is included in this calculator's quick assets.
Should I enter gross accounts receivable or net receivables?+
Enter net receivables after deducting allowances for uncollectible accounts. The default $60,000 is treated as an already-net amount; the calculator does not estimate or deduct an allowance.
Does the default quick ratio of 1.2778 mean the business can pay every current liability immediately?+
No. The $115,000.00 of quick assets exceeds the $90,000 of current liabilities, but some of those assets are securities and receivables rather than cash. Actual payment capacity depends on how quickly they become cash and when obligations fall due.
How does this quick ratio differ from the current ratio?+
The current ratio uses total current assets, including inventory and prepayments. This calculator uses only cash, marketable securities, and net receivables, giving a narrower view of short-term asset coverage.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
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Results are estimates for informational purposes and are not financial, medical or legal advice.