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Quick Ratio Calculator

Answers the Question

How bad is a company's liquidity?

Calculator for Quick Ratio

 

What Is the Quick Ratio?

The quick ratio (also known as the acid-test ratio) is just what it sounds like, a fast (yet imperfect) means of estimating the financial health of a company.

Most healthy firms should have a ratio value of one or greater, but the norms depend upon industry.

Values that are less than one are found in companies that will have trouble meeting their short-term obligations. Larger values above one tend to be seen as signs of financial strength.

Why Is it Important?

Formula(s) to Calculate Quick Ratio

Common Mistakes

Additional Business & Financial Calculators Available