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 of Liquidity Ratio is the goods and materials that a business holds for the ultimate goal of resale.ⓘ Inventory of Liquidity Ratio [I_LR]			+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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Quick Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities
QR = (CA-I_LR)/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-I_LR)/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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Created by Team Softusvista

Softusvista Office (Pune), India

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Verified by Himanshi Sharma

Bhilai Institute of Technology (BIT), Raipur

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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

Quick Ratio Formula

LaTeX Go

Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities
QR = (CA-I_LR)/CL

How to Calculate Quick Ratio?

Quick Ratio calculator uses Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/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 of Liquidity Ratio (I_LR) & 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-I_LR)/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 Quick Ratio?

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 Quick Ratio, you need Current Assets (CA), Inventory of Liquidity Ratio (I_LR) & 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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