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| Quick Ratio Formula: Quick Ratio = (Current Assets - Current Inventory) / Current Liabilities | |||
Quick Ratio Definition The Quick Ratio Calculator will calculate the quick ratio of any company if you enter in the current assets, current inventory, and the current liabilities of the company. The quick ratio is very similar to the current ratio (which you can calculate using the Current Ratio Calculator) with the difference between the current ratio and the quick ratio being that the quick ratio subtracts the amount of the current inventory from the current assets while the current ratio does not. The quick ratio is a liquidity ratio that is also known as the acid test ratio and is often used to measure the short term liquidity of a company (and it’s ability to meet its short term debt obligations using current assets besides its inventory). How to Calculate Quick Ratio Let's be honest - sometimes the best quick ratio calculator is the one that is easy to use and doesn't require us to even know what the quick ratio formula is in the first place! But if you want to know the exact formula for calculating quick ratio then please check out the "Formula" box above. |