Calculate the quick ratio of your business using this calculator. Enter your total cash (and cash equivalent), marketable securities, accounts receivable, and current liabilities.

## Quick Ratio Formula

The following formula is used to calculate the quick ratio of a company.

quick ratio = (C + S + AR) / CL

• Where C is cash and cash equivalents
• S is securities
• AR is accounts receivable
• CL is current liabilities

## Quick Ratio Definition

Similar to the current ratio, the quick ratio is a measure of the liquidity of a business. Its other name goes by the acid-test ratio, which as the name suggests, is a measure of how “acidic” or how much risk a business currently contains.

## How to calculate quick ratio?

Here’s an example of how you can use this calculator or formula to calculate the quick ratio of a business.

1. First, you must take the measure of all of your cash. This includes cash equivalents. Let’s say you find you currently have \$10,000,000.00 in cash.
2. Next, you need to measure your marketable securities. This will be a measure of the current value of those securities, not potential future value. Let’s say you have \$5,000,000.00 in securities.
3. Next, you must take account of all of your current account’s receivable, or pending invoices. Let’s say you have \$2,000,000.00.
4. Finally, you need to calculate your total liabilities. This includes all outstanding loans, payments, etc. Let’s assume you have \$10,000,000.00 in liabilities.
5. Plug all of these into the calculator and you get a quick ratio of 1.7. Anything above 1 is considered a great quick ratio. That means no matter what, you can pay off your debts.

## FAQ

What is a quick ratio?

A quick ratio is a measure of how well a business is set up to pay off its liabilities.