What this calculator measures
Evaluates immediate liquidity by excluding inventory from current assets.
Common use cases
Use this model when the inputs describe the same decision, period and customer or product scope.
- Measure liquid asset coverage without inventory and prepaid expenses.
- Use the result with the recorded inputs: Cash, Marketable securities, Net receivables, Current liabilities.
- Compare multiple scenarios before making a finance decision.
Formula
Quick ratio = (Cash + Securities + Receivables) ÷ Current liabilities
Quick assets are intended to be more liquid than inventory.
Worked example
$150,000 liquid assets divided by $100,000 liabilities yields a 1.5 quick ratio.
How to interpret the result
Provides a stricter test of liquidity than the standard current ratio.
Assumptions and limitations
- Accounts receivable and cash are fully collectible and accessible.