Business Quick Ratio Solution

STEP 0: Pre-Calculation Summary
Formula Used
Quick Ratio = (Current Assets-Inventory)/Current Liabilities
QR = (CA-45)/CL
This formula uses 4 Variables
Variables Used
Quick Ratio - Quick Ratio helps you to determine your immediate ability to pay your financial obligations.
Current Assets - Current assets are balance sheet accounts that represent the value of all assets that can reasonably expect to be converted into cash within one year.
Inventory - Inventory is the goods and materials that a business holds for the ultimate goal of resale.
Current Liabilities - Current Liabilities are the company debts or obligations that are due within one year.
STEP 1: Convert Input(s) to Base Unit
Current Assets: 79500 --> No Conversion Required
Inventory: 45 --> No Conversion Required
Current Liabilities: 3000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
QR = (CA-45)/CL --> (79500-45)/3000
Evaluating ... ...
QR = 26.485
STEP 3: Convert Result to Output's Unit
26.485 --> No Conversion Required
FINAL ANSWER
26.485 <-- Quick Ratio
(Calculation completed in 00.004 seconds)

Credits

Created by Team Softusvista
Softusvista Office (Pune), India
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Verified by Himanshi Sharma
Bhilai Institute of Technology (BIT), Raipur
Himanshi Sharma has verified this Calculator and 800+ more calculators!

6 Liquidity Ratios Calculators

Business Quick Ratio
Go Quick Ratio = (Current Assets-Inventory)/Current Liabilities
Quick Ratio
Go Quick Ratio = (Current Assets-Inventory)/Current Liabilities
Cash Ratio
Go Cash Ratio = (Cash and Cash Equivalents/Current Liabilities)
Business Current Ratio
Go Current Ratio = Current Assets/Current Liabilities
Current Ratio
Go Current Ratio = Current Assets/Current Liabilities
Average Collection Period using Receivables Turnover
Go Average Collection Period = 365/Receivables Turnover Ratio

Business Quick Ratio Formula

Quick Ratio = (Current Assets-Inventory)/Current Liabilities
QR = (CA-45)/CL

How to Calculate Business Quick Ratio?

Business Quick Ratio calculator uses Quick Ratio = (Current Assets-Inventory)/Current Liabilities to calculate the Quick Ratio, Business Quick Ratio helps you to determine your immediate ability to pay your financial obligations. Quick Ratio is denoted by QR symbol.

How to calculate Business Quick Ratio using this online calculator? To use this online calculator for Business Quick Ratio, enter Current Assets (CA), Inventory (45) & Current Liabilities (CL) and hit the calculate button. Here is how the Business Quick Ratio calculation can be explained with given input values -> 26.485 = (79500-45)/3000.

FAQ

What is Business Quick Ratio?
Business Quick Ratio helps you to determine your immediate ability to pay your financial obligations and is represented as QR = (CA-45)/CL or Quick Ratio = (Current Assets-Inventory)/Current Liabilities. Current assets are balance sheet accounts that represent the value of all assets that can reasonably expect to be converted into cash within one year, Inventory is the goods and materials that a business holds for the ultimate goal of resale & Current Liabilities are the company debts or obligations that are due within one year.
How to calculate Business Quick Ratio?
Business Quick Ratio helps you to determine your immediate ability to pay your financial obligations is calculated using Quick Ratio = (Current Assets-Inventory)/Current Liabilities. To calculate Business Quick Ratio, you need Current Assets (CA), Inventory (45) & Current Liabilities (CL). With our tool, you need to enter the respective value for Current Assets, Inventory & Current Liabilities and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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