Free Quick Ratio Calculator
Calculate the quick ratio (acid-test ratio) using current assets, inventory, and current liabilities to evaluate short-term liquidity.
When to use this calculator
Quick ratio (acid-test) measures liquidity using cash and near-cash assets against current liabilities — stricter than current ratio. Lenders and treasury leads use it when inventory is slow or subjective. Calculate before covenant reporting or vendor prepayment requests.
Methodology and inputs
Quick ratio = (cash + marketable securities + accounts receivable) ÷ current liabilities. Exclude inventory and prepaid expenses — they may not convert quickly.
Worked example
Manufacturer: cash $220k, AR $640k, liabilities $510k. Quick ratio = ($220k + $640k) ÷ $510k = 1.69. Current ratio was 2.3 — $390k inventory and prepaids padded headline liquidity.
How to interpret the result
Quick ratio below 1.0 with tight AR quality is stress; well above 2.0 may mean excess idle cash. Divergence between current and quick ratio flags inventory-heavy working capital.
Reviewed by ZBI Tools · Practical finance and operations calculators for SMB teams.
Further reading
For a deeper walkthrough of the concepts behind this tool, see our guide: Read the full analysis guide.
Related hub: Browse all calculators · Analyzers & calculators home · About Zen Box Infinity
Practical questions
Include short-term investments?
Yes if liquid within 90 days — same as marketable securities.
Doubtful AR?
Use net AR after allowance for conservative liquidity read.
Seasonal draw on revolver?
Include revolving balance in liabilities at snapshot date.
Formulas
Quick Ratio = (Current Assets − Inventory) ÷ Current Liabilities
Example: Current assets EUR 280,000; inventory EUR 90,000; liabilities EUR 140,000 → quick ratio 1.36.
Source: ZBI Business Control Library — quick-ratio.
FAQ
What is the quick ratio?
A stricter liquidity test that excludes inventory from assets you can quickly convert to cash.
What is a healthy quick ratio?
Compare to your own trend and sector—there is no single universal target.