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Liquidity Ratio (Quick Ratio) Calculator
Quick ratio — current assets excluding inventory, relative to current liabilities.
Quick Ratio
1.27
The quick ratio subtracts inventory from current assets before dividing by current liabilities, giving a more conservative liquidity measure than the current ratio.
It's particularly useful for businesses where inventory might be hard to liquidate quickly at full value, since it isolates the assets that can most readily cover short-term obligations.
FAQ
Why exclude inventory?
Inventory can be slow or uncertain to convert to cash, so the quick ratio (also called the acid-test ratio) strips it out for a stricter view of near-term liquidity than the current ratio.
What's a healthy quick ratio?
A ratio at or above 1 generally suggests a company can cover short-term liabilities without relying on selling inventory, though acceptable levels vary by industry.