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Quick Ratio (Acid Test) Calculator with Cash Ratio and Current Ratio

Is this entity in good shape, or are there warning signs?

Quick ratio, cash ratio and current ratio from the current asset lines and current liabilities.

  • Runs in your browser
  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Quick ratio
1.10
Cash, securities and receivables per dollar of current liabilities
Cash ratio
0.43
Current ratio
1.94
Drawn to one scale
Quick assets$1,260,000
Quick assets less current liabilities$110,000
All results
MeasureResult
Quick ratio1.10
Cash ratio0.43
Current ratio1.94
Quick assets$1,260,000
Quick assets less current liabilities$110,000
How this was worked out
Work shownrecomputed as you type
Quick ratio = (cash + securities + net receivables) / current liabilities
Cash ratio = (cash + securities) / current liabilities
Current ratio = current assets / current liabilities

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Quick ratio = (cash + securities + net receivables) / current liabilities
  • Cash ratio = (cash + securities) / current liabilities
  • Current ratio = current assets / current liabilities

How it works

The quick ratio leaves out inventory and prepaids because they are slower or impossible to turn into cash. It is a stricter liquidity test than the current ratio.

A ratio below 1.0 means quick assets do not cover current liabilities. That is not always a problem, for example in a business that collects cash daily, but it is a prompt to look at going concern indicators and debt maturities.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

What is a good quick ratio?

It depends on the industry. Compare to peers and to the entity own history.

Are receivables always quick?

Only if collectible soon. Past-due balances may need to be excluded.

Is the cash ratio stricter?

Yes. It counts only cash and securities.

Formulas on this page are the standard definitions.

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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