Quick Ratio Calculator

1. Enter cash balances

Include cash and cash equivalents available for near-term obligations.

2. Add liquid investments

Enter marketable securities that can reasonably be converted to cash quickly.

3. Enter collectible receivables

Use accounts receivable expected to be collected within the current operating cycle.

4. Enter current liabilities

Use obligations due within one year or the normal operating cycle.

5. Interpret the coverage

Review the ratio together with the dollar surplus or shortfall and the quality of receivables.

Quick assets = Cash + Marketable securities + Accounts receivable Quick ratio = Quick assets ÷ Current liabilities Liquidity surplus or shortfall = Quick assets − Current liabilities

Where:

• Cash — cash and cash-equivalent balances
• Marketable securities — readily saleable short-term investments
• Accounts receivable — amounts expected from customers
• Current liabilities — short-term obligations

Assumptions: Inventory and prepaid expenses are excluded. The formula does not adjust receivables for aging or default risk.

What the result means

Along with the ratio, the page shows total quick assets and the dollar surplus or shortfall against current liabilities. Interpretation depends on cash-flow timing, receivable quality, industry practices, and access to financing, so the result should be reviewed with the underlying balance-sheet details.

Financial ratios are analytical estimates and are not accounting or lending advice.

Given:

• Cash: $85,000
• Marketable securities: $15,000
• Accounts receivable: $70,000
• Current liabilities: $160,000

Calculation:
Quick assets = 85,000 + 15,000 + 70,000 = $170,000. Quick ratio = 170,000 ÷ 160,000 = 1.0625. Surplus = 170,000 − 160,000 = $10,000.

Result: Quick ratio of 1.06

Interpretation: Entered quick assets exceed current liabilities by $10,000, but collection timing and operating cash needs still matter.