Quick Ratio (Acid-Test) Calculator

Measure a company's ability to meet its short-term obligations with its most liquid assets.

Liquid Assets & Debt

Cash & Equivalents

Marketable Securities

Net Accounts Receivable

Current Liabilities

Liquidity Health

Quick Ratio1.50Good Liquidity

Liquid Assets Composition

Overview

Measure a company's ability to meet its short-term obligations with its most liquid assets.

💡

Pro Tips

What is the Quick Ratio?: The quick ratio, often called the 'acid-test ratio', measures a company's ability to cover its current liabilities with assets that can be converted into cash within 90 days. It excludes inventory because it can be difficult to sell quickly.
What is a 'safe' Quick Ratio?: A ratio of 1.0 or higher is generally considered healthy, as it means the company has at least $1 of liquid assets for every $1 of short-term debt.
How does it differ from the Current Ratio?: The Current Ratio includes inventory and prepaid expenses. The Quick Ratio is a more conservative and 'strict' test of liquidity.

Fun Facts

"The 'acid-test' name comes from the historical use of acid by gold miners to test if a metal was real gold or not."
"A quick ratio that is 'too high' might suggest that the company is not using its cash efficiently by holding too much of it."
"Service companies usually have quick ratios very similar to their current ratios because they carry little to no inventory."

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Quick Ratio (Acid-Test) Calculator

Measure a company's ability to meet its short-term obligations with its most liquid assets.

Liquid Assets & Debt

Cash & Equivalents

Marketable Securities

Net Accounts Receivable

Current Liabilities

Liquidity Health

Quick Ratio1.50Good Liquidity

Liquid Assets Composition

Overview

Measure a company's ability to meet its short-term obligations with its most liquid assets.

💡

Pro Tips

What is the Quick Ratio?: The quick ratio, often called the 'acid-test ratio', measures a company's ability to cover its current liabilities with assets that can be converted into cash within 90 days. It excludes inventory because it can be difficult to sell quickly.
What is a 'safe' Quick Ratio?: A ratio of 1.0 or higher is generally considered healthy, as it means the company has at least $1 of liquid assets for every $1 of short-term debt.
How does it differ from the Current Ratio?: The Current Ratio includes inventory and prepaid expenses. The Quick Ratio is a more conservative and 'strict' test of liquidity.

Fun Facts

"The 'acid-test' name comes from the historical use of acid by gold miners to test if a metal was real gold or not."
"A quick ratio that is 'too high' might suggest that the company is not using its cash efficiently by holding too much of it."
"Service companies usually have quick ratios very similar to their current ratios because they carry little to no inventory."

Used with this

Similar tools that might be useful

AFFO Calculator

Calculate Adjusted Funds From Operations (AFFO), a key performance metric for Real Estate Investment Trusts (REITs).

AFN (Additional Funds Needed) Calculator

Determine the amount of external funding a business needs to support a projected increase in sales.

ARV Calculator (House Flipping)

Calculate After Repair Value and determine the maximum offer price using the 70% rule for real estate investors.