Quick Ratio Calculator
Check short term financial health. Enter current assets, inventory and current liabilities — the quick ratio appears with a plain English interpretation.
Your numbers
$
Cash, bank, receivables and stock.
$
Excluded because stock is slow to turn into cash.
$
Bills and debts due within a year.
Result
0
Quick ratio
$0
Quick assets (excl. inventory)
How to use
- Enter your current assets (cash, bank, receivables, stock).
- Enter the value of inventory, which is excluded from the strict test.
- Enter current liabilities — bills and debts due within a year.
- Press Calculate Quick Ratio to see the ratio and a plain English verdict.
Formula: quick ratio = (current assets − inventory) ÷ current liabilities.
Tips
- A ratio of 1 means you can pay every short term bill without selling stock.
- Below 0.5 is a cash crunch warning — collect receivables faster or cut stock levels.
- Well above 2 may mean cash is sitting idle instead of being put to work.
- Compare the ratio month to month rather than judging one snapshot alone.