Quick Ratio Calculator

✖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.ⓘ Current Assets [CA]			+10% -10%
✖Inventory is the goods and materials that a business holds for the ultimate goal of resale.ⓘ Inventory [45]			+10% -10%
✖Current Liabilities are the company debts or obligations that are due within one year.ⓘ Current Liabilities [CL]			+10% -10%

✖Quick Ratio helps you to determine your immediate ability to pay your financial obligations.ⓘ Quick Ratio [QR]

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Formula

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Quick Ratio

Formula

`"QR" = ("CA"-"45")/"CL"`

Example

`"2.6485"=("79500"-"45")/"30000"`

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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: 30000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

QR = (CA-45)/CL --> (79500-45)/30000

Evaluating ... ...

QR = 2.6485

STEP 3: Convert Result to Output's Unit

2.6485 --> No Conversion Required

FINAL ANSWER

2.6485 <-- Quick Ratio

(Calculation completed in 00.004 seconds)

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Credits

Created by Team Softusvista

Softusvista Office (Pune), India

Team Softusvista has created this Calculator and 600+ more calculators!

Verified by Himanshi Sharma

Bhilai Institute of Technology (BIT), Raipur

Himanshi Sharma has verified this Calculator and 800+ more calculators!

< 6 Liquidity Ratios Calculators

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Go Quick Ratio = (Current Assets-Inventory)/Current Liabilities

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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

Quick Ratio Formula

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

How to Calculate Quick Ratio?

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

How to calculate Quick Ratio using this online calculator? To use this online calculator for Quick Ratio, enter Current Assets (CA), Inventory (45) & Current Liabilities (CL) and hit the calculate button. Here is how the Quick Ratio calculation can be explained with given input values -> 26.485 = (79500-45)/30000.

FAQ

What is Quick Ratio?

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 Quick Ratio?

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 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.

How many ways are there to calculate Quick Ratio?

In this formula, Quick Ratio uses Current Assets, Inventory & Current Liabilities. We can use 1 other way(s) to calculate the same, which is/are as follows -

Quick Ratio = (Current Assets-Inventory)/Current Liabilities

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