Immediate Liquidity Check: Quick Ratio (Acid-Test) Calculator
Quick Ratio (Acid-Test) Calculator
Measure your company's immediate liquidity by calculating the Quick Ratio, excluding inventory.
Input Your Data
Assets convertible to cash within one year (e.g., cash, accounts receivable, inventory).
The value of goods available for sale.
Obligations due within one year (e.g., accounts payable, short-term loans).
Your Results
Quick Assets:
$0.00
Current assets easily convertible to cash, excluding inventory.
Quick Ratio:
0.00
Indicates a company's ability to meet its short-term obligations with its most liquid assets.
How It Works
- Enter your company's total current assets.
- Input your company's inventory value.
- Provide your company's total current liabilities.
- Click "Calculate" to see your Quick Assets and the Quick Ratio.
- The "Clear" button will reset all fields.
Formula for Quick Assets: Current Assets - Inventory
Formula for Quick Ratio: Quick Assets / Current Liabilities
Interpretation: A ratio of 1.0 or higher is generally considered healthy, indicating the company has enough liquid assets to cover its current liabilities.
How the quick ratio calculator works
The quick ratio (acid-test ratio) is a stricter liquidity test than the current ratio because it leaves out inventory, which can take time to sell. Enter your current assets, your inventory and your current liabilities.
Worked example
Current assets are 60,000, including inventory of 20,000, and current liabilities are 40,000. Quick ratio = (60,000 − 20,000) ÷ 40,000 = 1.0.
Frequently asked questions
Why exclude inventory?
Inventory is the least liquid current asset. It may be slow to sell or sell below cost.
Is a quick ratio of 1 good?
A ratio around 1 or above is often seen as comfortable, but it varies by industry.
Related: Quick ratio · Current ratio · Inventory · All calculators
