Quick answer
Quick ratio = (cash + accounts receivable + marketable securities) ÷ current liabilities. ($40,000 + $60,000 + $20,000) ÷ $90,000 = 1.33.
Enter cash, receivables, current liabilities and optionally securities. The calculator returns the quick (acid-test) ratio.
Related tools: Current Ratio Calculator: Current ratio from current assets and current liabilities.
How to use the Quick Ratio Calculator
- Enter cash and equivalents ($) (0 or more).
- Enter accounts receivable ($) (0 or more).
- Optionally, enter marketable securities (0 or more).
- Enter current liabilities ($) (above 0).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Cash and equivalents | A number, in $ | ≥ 0 |
| Accounts receivable | A number, in $ | ≥ 0 |
| Marketable securities (optional) | A number | ≥ 0 |
| Current liabilities | A number, in $ | > 0 |
Formula and method
Formula
quick ratio = (cash + receivables + securities) ÷ current liabilities
IEEE-754 double precision; shown to the decimals indicated.
Excludes inventory and prepaid expenses.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Cash and equivalents = 40000; Accounts receivable = 60000; Current liabilities = 90000; Marketable securities = 20000.
| Result | Value |
|---|---|
| Quick ratio | 1.33 |
Example 2
Inputs: Cash and equivalents = 10000; Accounts receivable = 15000; Current liabilities = 40000.
| Result | Value |
|---|---|
| Quick ratio | 0.63 |
The first line is the headline result (quick ratio). IEEE-754 double precision; shown to the decimals indicated.
Why it is stricter than the current ratio
It leaves out inventory and prepaid items, which may be hard to turn into cash quickly. A ratio above 1 means liquid assets alone cover short-term debts; 1.33 gives some cushion.
Reading it
A ratio under 1 does not always signal trouble, since some businesses collect cash fast, but it warrants a look at cash flow. Compare with industry norms.
How the result changes with cash and equivalents
Holding every other input at the first worked example, this table changes only cash and equivalents. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Cash and equivalents | Quick ratio |
|---|---|
| 20000 | 1.11 |
| 40000 | 1.33 |
| 80000 | 1.78 |
| 160000 | 2.67 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Current liabilities: entering "0" shows "Current liabilities must be greater than 0." beside that field and no result.
- Cash and equivalents: entering "-1" shows "Cash and equivalents must be at least 0." beside that field and no result.
Choosing between the Quick Ratio Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Current Ratio Calculator](/business/current-ratio-calculator/) | current assets and current liabilities | Current ratio |
| [Debt Ratio Calculator](/finance/debt-ratio-calculator/) | total liabilities and total assets | Debt ratio |
| [Debt-to-Income Ratio Calculator](/finance/debt-to-income-ratio-calculator/) | monthly debt payments and gross monthly income | Debt-to-income ratio |
| [Return on Equity Calculator](/business/return-on-equity-calculator/) | net income, equity at start and equity at end | Return on equity |
| [Accounts Payable Days Calculator](/business/accounts-payable-days-calculator/) | accounts payable, cost of goods sold and days in period | Days payable |
Background: business metrics
Business ratios depend on exactly which costs and revenues you include, so read each page's definition. Two common checks: break-even units = fixed costs ÷ (price − variable cost per unit), so $50,000 of fixed costs with a $10 price and $5 variable cost breaks even at 10,000 units; and net profit margin = net profit ÷ revenue, so $20,000 profit on $100,000 revenue is 20%.
Return on investment ignores time: 20% over five years is far less impressive than 20% in one, so compare returns over the same period.
Assumptions and limitations
- Securities are optional
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for current liabilities and cash and equivalents to confirm this.
Frequently asked questions
What is the acid-test ratio?
Another name for the quick ratio.
Are securities required?
No, they are optional.
How is it different from the current ratio?
The current ratio includes inventory.
What does the Quick Ratio Calculator calculate?
Acid-test ratio of liquid assets to current liabilities. It returns Quick ratio.
What formula does the Quick Ratio Calculator use?
quick ratio = (cash + receivables + securities) ÷ current liabilities. Excludes inventory and prepaid expenses.
What do I need to enter in the quick Ratio Calculator?
You enter Cash and equivalents ($), Accounts receivable ($) and Current liabilities ($). Optional: Marketable securities.
How is the result rounded or limited?
IEEE-754 double precision; shown to the decimals indicated. Securities are optional.
What is an example of a quick Ratio result?
With cash and equivalents 40000, accounts receivable 60000, current liabilities 90000 and marketable securities 20000, the quick ratio is 1.33.
Where does the method come from?
The method follows: OpenStax, Principles of Accounting, Volume 1: Financial Accounting (Rice University): liquidity ratios (quick ratio).
Related calculators
- Current Ratio Calculator — Current ratio from current assets and current liabilities.
- Return on Equity Calculator — Net income relative to average shareholders' equity.
- Accounts Payable Days Calculator — Days payable outstanding.
- Accounts Receivable Days Calculator — Days sales outstanding.
Sources
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (Rice University): liquidity ratios (quick ratio)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.