Quick Ratio (Acid-Test) Calculator

🧪 Assess Liquidity with Our Quick Ratio (Acid-Test) Calculator

When evaluating a company’s ability to meet its short-term obligations, the Quick Ratio — also known as the Acid-Test Ratio — is one of the most reliable indicators. It focuses on the most liquid assets, excluding inventory, to give a clearer picture of a company’s immediate financial health.

To make this analysis easier, we’ve created a Quick Ratio Calculator that’s fast, accurate, and easy to use.

🔍 What is the Quick Ratio?

The Quick Ratio measures a company’s ability to pay off its current liabilities using only its most liquid assets — typically cash, marketable securities, and accounts receivable.

Quick Ratio = Quick Assets / Current Liabilities

Unlike the Current Ratio, the Quick Ratio excludes inventory and other less liquid current assets, making it a more conservative measure of liquidity.

• A ratio above 1 indicates that the company can cover its short-term liabilities without selling inventory.
• A ratio below 1 may suggest liquidity concerns.

🧮 How to Use the Quick Ratio Calculator

Just enter:

• The company’s Quick Assets (cash, receivables, etc.)
• The Current Liabilities

And the calculator will instantly show you the Quick Ratio.

This tool is ideal for:

• Credit analysts and lenders
• Investors assessing financial risk
• Students learning financial ratios

📊 Quick Ratio in Action

Let’s say a company has:

• Quick Assets: ₹12,00,000
• Current Liabilities: ₹8,00,000

Then the Quick Ratio would be:

₹12,00,000 ÷ ₹8,00,000 = 1.50

This means the company has ₹1.50 in liquid assets for every ₹1 of short-term liabilities — a strong sign of liquidity.

💡 Final Thoughts

The Quick Ratio is a vital tool for assessing a company’s short-term financial resilience. It’s especially useful in industries where inventory may not be easily converted to cash.

Use our calculator to evaluate liquidity quickly and confidently — and add it to your financial analysis toolkit for smarter decision-making.