Quick Ratio Calculator

Understanding the Quick Ratio

The Quick Ratio (or Acid-Test Ratio) measures a company's ability to meet short-term liabilities using its most liquid assets — excluding inventory.

Quick Ratio = (Current Assets − Inventory) ÷ Current Liabilities

Example: If current assets = 500,000, inventory = 200,000, and liabilities = 250,000, then Quick Ratio = (500,000 − 200,000) ÷ 250,000 = 1.2.