MihsabaHow to use
Calculate quick ratio from cash, short-term investments and receivables against current liabilities without relying on inventory.
- Enter Cash.
- Enter Short-term investments.
- Enter Accounts receivable.
- Enter Current liabilities.
- Calculate, then review the metric definition and comparison limits.
How it is calculated
Example
Cash 40,000, short-term investments 10,000 and receivables 70,000 against liabilities 100,000 give quick assets 120,000 and a ratio of 1.2.
Important notes
Definitions of quick assets vary slightly. Avoid including inventory or prepayments when your reporting definition excludes them.
Worked examples and interpreting results
Cash 40,000, short-term investments 10,000 and receivables 70,000 against liabilities 100,000 give quick assets 120,000 and a ratio of 1.2.
| Case | Calculation | Result |
|---|---|---|
| Quick assets | 40000 + 10000 + 70000 | 120,000 |
| Quick ratio | 120000 ÷ 100000 | 1.2 |
How to check the result
Definitions of quick assets vary slightly. Avoid including inventory or prepayments when your reporting definition excludes them.
Frequently asked questions
How does it differ from current ratio?
Quick ratio typically excludes inventory and some less-liquid current assets, focusing on assets closer to cash.
Should the inputs use the same period?
Yes. Use figures from the same reporting period and accounting definition so balances and flows remain comparable.
Is the result enough for a decision?
No. The metric summarizes a numerical relationship; compare it with company history, industry context, and accounting or operating policies.