# Quick Ratio Calculator (Acid Test)

URL: https://speedycalculator.com/calculators/finance/quick-ratio/
Last updated: 2026-10-25

> The quick ratio calculator measures whether a company can pay its current liabilities using only its most liquid assets – cash, marketable securities and receivables – without selling inventory.

## Inputs

- Cash and cash equivalents
- Marketable securities
- Accounts receivable
- Current liabilities

## Results

- Quick ratio
- Quick assets
- Liquidity

## Formula

```
Quick ratio = (cash + marketable securities + accounts receivable) ÷ current liabilities
```

## Explanation

The quick ratio (acid test) is stricter than the current ratio because inventory and prepaid expenses can be hard to turn into cash quickly. A ratio of 1 or more is generally considered healthy.

### How to use the Quick Ratio Calculator

- **Cash and cash equivalents**
- **Marketable securities**
- **Accounts receivable**
- **Current liabilities**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter cash, marketable securities, accounts receivable and current liabilities.

### Tips

- Check whether rates are quoted annually, semi-annually or per period.
- Bond prices and yields move in opposite directions – a higher yield means a lower price.
- Use the bond's clean price (without accrued interest) for yield calculations.
- Credit ratios are most useful when tracked over several years.

### Common mistakes to avoid

- Confusing the coupon rate with the yield.
- Using the face value instead of the market price.
- Forgetting that callable bonds may be redeemed before maturity.

### Inputs explained

FieldWhat to enterCash and cash equivalentsAmount in your currencyMarketable securitiesAmount in your currencyAccounts receivableAmount in your currencyCurrent liabilitiesAmount in your currency

### What each result means

- **Quick ratio** = ([Cash and cash equivalents] + [Marketable securities] + [Accounts receivable])÷[Current liabilities]
- **Quick assets** = [Cash and cash equivalents] + [Marketable securities] + [Accounts receivable]

### Example values

How the main result changes when **Cash and cash equivalents** changes and everything else stays at the example values above:

Cash and cash equivalentsQuick ratio75,0001.02112,5001.13150,0001.25187,5001.37225,0001.48300,0001.72

## Worked example

Inputs — Cash and cash equivalents: $150,000; Marketable securities: $50,000; Accounts receivable: $200,000; Current liabilities: $320,000.

Results — **Quick ratio = 1.25**; Quick assets = $400,000.00; Liquidity = Healthy.

## FAQ

**What is a good quick ratio?**
1.0 or higher.

**Why exclude inventory?**
It may take time or discounts to sell.

**How is it different from the current ratio?**
The current ratio includes inventory and other current assets.

**What formula does the Quick Ratio Calculator use?**
Quick ratio = (cash + marketable securities + accounts receivable) ÷ current liabilities.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)