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Quick Ratio Calculator (Acid Test Ratio)

Calculator

What is the Quick Ratio (aka Acid Test Ratio)?

The Quick Ratio (also known as the Acid Test Ratio) is a measure of how well a company can meet a short-term financial obligation.

A high quick ratio means that a company can easily pay a short-term financial obligation. A low quick ratio means they might not be able to pay it.

Formula

Quick Ratio (Standard) = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities

Quick Ratio (Alternate) = (Current Assets – Inventory) / Current Liabilities