Business Quick Ratio Solution

STEP 0: Pre-Calculation Summary
Formula Used
Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities
QR = (CA-ILR)/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 of Liquidity Ratio - Inventory of Liquidity Ratio 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 of Liquidity Ratio: 45 --> No Conversion Required
Current Liabilities: 30000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
QR = (CA-ILR)/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)

Credits

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Liquidity Ratios Calculators

Quick Ratio
​ LaTeX ​ Go Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities
Business Current Ratio
​ LaTeX ​ Go Current Ratio = Current Assets/Current Liabilities
Current Ratio
​ LaTeX ​ Go Current Ratio = Current Assets/Current Liabilities
Average Collection Period using Receivables Turnover
​ LaTeX ​ Go Average Collection Period = 365/Receivables Turnover Ratio

Important Formulas of Financial Ratios Calculators

Free Cash Flow to Firm
​ LaTeX ​ Go Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures
Debt to Equity Ratio
​ LaTeX ​ Go Debt to Equity (D/E) = Total Liabilities/Total Shareholders' Equity*100
Free Cash Flow
​ LaTeX ​ Go Free Cash Flow = Cash Flow from Operations-Net Capital Expenditures
Debt to Assets Ratio
​ LaTeX ​ Go Debt to Assets Ratio = Total Liabilities/Total Assets

Business Quick Ratio Formula

​LaTeX ​Go
Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities
QR = (CA-ILR)/CL

How to Calculate Business Quick Ratio?

Business Quick Ratio calculator uses Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/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 of Liquidity Ratio (ILR) & 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)/30000.

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-ILR)/CL or Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/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 of Liquidity Ratio 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 of Liquidity Ratio)/Current Liabilities. To calculate Business Quick Ratio, you need Current Assets (CA), Inventory of Liquidity Ratio (ILR) & Current Liabilities (CL). With our tool, you need to enter the respective value for Current Assets, Inventory of Liquidity Ratio & 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 of Liquidity Ratio & Current Liabilities. We can use 2 other way(s) to calculate the same, which is/are as follows -
  • Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities
  • Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities
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