May 10, 2025 · The quick ratio is calculated by dividing a company’s most liquid assets like cash, cash equivalents, marketable securities, and accounts receivables by its total current liabilities.

The quick ratio formula is a vital liquidity ratio that assesses a company's ability to meet short-term debts. It is calculated by dividing the sum of cash, cash equivalents, marketable securities, and …

Jul 15, 2024 · It is a liquidity ratio used by a company’s stakeholders, investors, and lenders and takes a company’s quick assets—which are current assets minus inventory and long-term receivables—and …

Sep 8, 2022 · The quick ratio is one way to measure a business’s ability to quickly convert short-term assets into cash. Also known as the “acid test ratio,” the quick ratio is an indicator of a company’s …

Apr 18, 2024 · The formula for calculating the quick ratio is equal to cash plus accounts receivable, divided by current liabilities. For example, suppose a company has the following balance sheet data: …

Quick Ratio = [Current Assets – Inventory – Prepaid expenses] / Current Liabilities. For example, let’s assume a company has: This company has a liquidity ratio of 5.5, which means that it can pay its …

How to calculate quick ratio with our calculator? What is a good quick ratio? The quick ratio calculator helps you calculate the value of a quick ratio - one of the simple liquidity indicators used in corporate …

The standard formula for calculating the quick ratio stands as follows: Quick Ratio = (Cash and Equivalents + Marketable Securities + Accounts Receivable) ÷ Current Liabilities. There is also an …

Nov 4, 2025 · Or, simplified: Quick Ratio = Quick Assets / Current Liabilities. Quick assets are just the money you can grab right now to spend or pay something off, no hassle. Think actual cash in your …

This article will explain how to calculate the quick ratio and provide tips on improving liquidity. What is the quick ratio? Quick ratio vs. current ratio: Which is better? What is a good quick ratio? What is the …