Quick Ratio Calculator
Calculate the quick ratio (acid-test ratio) from current assets, inventory, and current liabilities. Get quick assets, the quick ratio, the current ratio for comparison, and a liquidity rating.
Input
Cash, receivables, inventory, and other assets convertible to cash within a year.
Inventory value included in current assets, from the balance sheet.
Debts and obligations due within a year, from the balance sheet.
Output
| Metric | Value |
|---|---|
| No data yet | |
Guides
What is the quick ratio?
The quick ratio, also called the acid-test ratio, measures a company's ability to cover its short-term obligations using only its most liquid assets — the ones that can be converted to cash almost immediately. Unlike the current ratio, it excludes inventory, because inventory can take time to sell and isn't always convertible to cash at book value on short notice.
How this tool works
- Enter current assets — cash, receivables, inventory, and other assets convertible to cash within a year, from the balance sheet.
- Enter inventory — the portion of current assets tied up in inventory.
- Enter current liabilities — debts and obligations due within a year.
- Choose a currency for the formatted output.
The Quick Ratio Summary shows quick assets (current assets minus inventory), the quick ratio, the current ratio for direct comparison, how much of current assets is inventory, and a liquidity rating.
Why show the current ratio and inventory share too?
The quick ratio and current ratio use the same current-liabilities denominator, so the gap between them is entirely explained by inventory. Showing inventory share of current assets alongside both ratios makes that gap concrete — a large gap with a high inventory share means liquidity looks fine on paper (current ratio) but could tighten quickly if that inventory doesn't sell as expected.
The formula
Quick Assets = Current Assets − Inventory. Quick Ratio = Quick Assets ÷ Current Liabilities. Current Ratio = Current Assets ÷ Current Liabilities, shown for comparison.
A quick ratio below 1.0 means a company can't cover its current liabilities with liquid assets alone and would need to sell inventory or raise cash another way. A quick ratio of 1.0 or above is generally considered a comfortable liquidity position — though, as with the current ratio, what counts as "healthy" still varies by industry.
Common uses
- Assessing whether a company can meet short-term obligations without relying on inventory sales
- Comparing liquidity across companies with very different inventory levels
- Screening potential investments or loan applicants for near-term liquidity risk
- Spotting when a healthy-looking current ratio is mostly inventory, not cash
Privacy
This tool runs entirely in your browser. Your numbers are never uploaded to a server.
Use it from code
From 3 credits per callREST API
curl -X POST https://api.iotools.cloud/v1/tool/quick-ratio-calculator \
-H "Authorization: Bearer YOUR_API_KEY" \
-H "Content-Type: application/json" \
-d '{
"currentAssets": "150000",
"inventory": "40000",
"currentLiabilities": "100000",
"currency": "USD"
}'Swap in your own key from your account. The tool's fields are the body — no wrapper.
Ask an AI agent
Use the IOTools `quick-ratio-calculator` tool (Quick Ratio Calculator) on this input:
YOUR_INPUT_HEREPaste this at any agent connected to the IOTools MCP server, then add your input.