Financial ratio tool
Quick Ratio Calculator
Calculate quick ratio using current assets, inventories and short-term liabilities to estimate short-term liquidity excluding inventories.
Calculator
Quick ratio calculator
Enter current assets, inventories and short-term liabilities to calculate quick ratio.
Results provide a general financial interpretation. Sector structure, inventory turnover and cash conversion cycle should also be considered.
Quick ratio formula
- Quick assets
- Current assets - inventories
- Quick ratio
- (Current assets - inventories) / short-term liabilities
Example quick ratio calculation
If a company has 1,000,000 TRY in current assets, 250,000 TRY in inventories and 500,000 TRY in short-term liabilities, quick assets are 750,000 TRY and quick ratio is 1.50.
Frequently asked questions
What is quick ratio?
Quick ratio is a liquidity ratio calculated by dividing current assets excluding inventories by short-term liabilities.
What is a good quick ratio?
A value around 1 or above is generally interpreted as stronger short-term liquidity, but the ideal level may vary by sector.
What is the difference between current ratio and quick ratio?
Current ratio includes all current assets. Quick ratio excludes inventories and provides a stricter liquidity measure.