How it works
Quick ratio = (cash + marketable securities + net receivables) / current liabilities. Inventory and prepayments are excluded.
Input definitions
- Cash and cash equivalents
- Enter the value in the labeled unit.
- Marketable securities
- Enter the value in the labeled unit.
- Net current receivables
- Enter the value in the labeled unit.
- Current liabilities
- Enter the value in the labeled unit.
A worked example
- Cash and cash equivalents
- 20000
- Marketable securities
- 10000
- Net current receivables
- 50000
- Current liabilities
- 40000
Assumptions & limits
Uses the accounting classifications, periods and policies you enter. Illustrative management-accounting model; it is not an audited statement, filing or determination of local accounting or tax compliance.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-18. Content checked against the stated method and examples. Our verification approach.
Common questions
Why is inventory excluded?
Inventory may require time, selling costs or price reductions to turn into cash. Quick assets are intended to be more immediately liquid.
How does Quick ratio work?
Quick ratio = (cash + marketable securities + net receivables) / current liabilities. Inventory and prepayments are excluded.
What should I check before using Quick ratio?
Uses the accounting classifications, periods and policies you enter. Illustrative management-accounting model; it is not an audited statement, filing or determination of local accounting or tax compliance.