May 10, 2025 · The quick ratio is calculated by dividing a company’s most liquid assets like cash, cash equivalents, marketable securities, and accounts receivables by its total current liabilities.

The quick ratio formula is a vital liquidity ratio that assesses a company's ability to meet short-term debts. It is calculated by dividing the sum of cash, cash equivalents, marketable securities, and …

Sep 8, 2022 · The quick ratio is the value of a business’s “quick” assets divided by its current liabilities. Quick assets include cash and assets that can be converted to cash in a short time, which usually …

The quick ratio calculator helps you calculate the value of a quick ratio - one of the simple liquidity indicators used in corporate finance to assess the liquidity of a company.

Apr 18, 2024 · Quick Ratio Formula The formula for calculating the quick ratio is equal to cash plus accounts receivable, divided by current liabilities.

Quick Ratio = [Current Assets – Inventory – Prepaid expenses] / Current Liabilities. For example, let’s assume a company has: This company has a liquidity ratio of 5.5, which means that it can pay its …

The quick ratio formula is a company's quick assets divided by its current liabilities. It’s a financial ratio measuring your ability to pay current liabilities with assets that quickly convert to cash.

Jul 15, 2024 · It is a liquidity ratio used by a company’s stakeholders, investors, and lenders and takes a company’s quick assets—which are current assets minus inventory and long-term receivables—and …

The standard formula for calculating the quick ratio stands as follows: Quick Ratio = (Cash and Equivalents + Marketable Securities + Accounts Receivable) ÷ Current Liabilities. There is also an …

Dec 12, 2025 · Two formulas calculate the Quick Ratio, both producing identical results: Quick Ratio = (Cash + Cash Equivalents + Marketable Securities + Accounts Receivable) ÷ Current Liabilities. This …