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Quick Ratio Calculator

Quick Ratio Calculator is part of Toolspire and is ready as soon as this page loads. ₹200 of current assets, ₹50 of inventory and ₹100 of current liabilities leave ₹150 of quick assets. 150 ÷ 100 is 1.5.

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What you can do here

Stock comes out

The subtraction is the whole point. Cash, receivables and other current assets stay.

The current ratio is named beside it

The detail reminds you what the looser ratio would have been.

No prepaid-expense debate

Anything you leave inside current assets, other than the inventory you type, stays in the quick total.

The sequence

How to use the Quick Ratio Calculator

  1. 1

    Make sure inventory is part of the asset total

    If stock is already excluded from the asset box, type 0 for inventory or you will subtract it twice.

  2. 2

    Use current liabilities only

    A five-year loan is not a bill the quick ratio is meant to cover.

  3. 3

    Compare 1.5 with 2

    The sample’s gap is the stock. If your gap is most of the assets, the business is a warehouse.

Worth knowing

  • Quick Ratio Calculator on Toolspire: quick ratio = (current assets − inventory) ÷ current liabilities.
  • 200 − 50 = 150, and 150 ÷ 100 = 1.5.
  • Inventory larger than current assets is rejected, because the quick assets would be negative from a typing error.
  • The current ratio on the same numbers is 2, because it keeps the ₹50 of stock.

The acid test ignores the warehouse

The quick ratio asks whether short-term bills could be met without selling inventory. On the sample, ₹50 of a ₹200 asset pile is stock, so only ₹150 is treated as quick, and the ratio is 1.5 rather than 2. Receivables that will not be collected still count, because you did not tell the page they are doubtful.

FAQ

Questions about Quick Ratio Calculator

Where does Quick Ratio Calculator run?

Quick Ratio Calculator runs in this tab on Toolspire. What you type or drop in is not sent to us and is not stored on a server.

What is the quick ratio for assets 200, stock 50, bills 100?

1.5. Quick assets are 150.

How is that different from the current ratio?

The current ratio keeps the stock and would be 2 on these numbers.

What if inventory is zero?

The quick ratio equals the current ratio. There was nothing to remove.

Can stock exceed current assets?

The page rejects that. It usually means the two figures are not from the same total.

Keep going

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