Quick Ratio Calculator: Acid-Test Ratio and Liquidity

Quick ratio formula

Quick ratio (acid-test ratio) = quick assets ÷ current liabilities. The result is shown as a multiple (×) and a percentage. Quick assets are current assets expected to be available relatively soon; inventory and prepaid expenses are commonly excluded.

This calculator offers two definitions. The component method adds cash and cash equivalents, short-term investments and net receivables. The subtraction method deducts inventory and prepaid/other excluded current assets from total current assets. Classification varies by accounting policy and analysis; use consistent statements and disclose the method when comparing companies.

Verified example

Cash $450,000 + short-term investments $50,000 + net receivables $500,000 = $1,000,000 quick assets. With current liabilities of $800,000, the ratio is $1,000,000 ÷ $800,000 = 1.25× (125%). A prior balance of $900,000 quick assets ÷ $750,000 liabilities = 1.20×, so the change is +0.05×, or +5 percentage points (about 4.17% relative). At a user-entered 1.00× target, quick assets corresponding to current liabilities are $800,000; current quick assets exceed that scenario by $200,000.

Assumptions and limitations

• Current liabilities must be greater than zero. Quick assets may be zero; the result is then 0×. Monetary inputs support 0 to 1,000,000,000,000 with up to 6 decimal places; the target ratio supports values above 0 through 1,000,000.
• In subtraction mode, inventory and other excluded amounts cannot exceed current assets. All amount inputs must use the same currency, scale and reporting date.
• The currency selector formats amounts only; no foreign-exchange conversion or statement import is performed. The prior-period comparison uses manually entered quick assets and current liabilities.
• No single quick-ratio threshold is appropriate for every industry or company. Seasonality, cash-flow timing, receivable quality, credit lines and operating model matter; this is not a solvency opinion, loan approval, accounting audit or investment recommendation.

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