Compute current, quick (acid-test), and cash ratios from current assets, inventory, cash, and current liabilities.
| Current | – |
| Quick | – |
| Cash ratio | – |
Use this liquidity calculator as a balance-sheet health check: can short-term bills be covered by current assets, by near-cash, or by cash alone. The quick (acid-test) ratio ignores inventory because it may be slow to sell. Prepayments are not stripped here.
Current = current assets ÷ current liabilities. Quick = (current assets − inventory) ÷ current liabilities. Cash ratio = cash ÷ current liabilities. A result of 1.5 means 1.50 units of cover per unit of current liabilities. Use the same currency and the same snapshot for every figure.
Current assets: Cash, receivables, inventory, and other assets due within a year.
Inventory: Stock you subtract for the quick ratio.
Cash & equivalents: Cash and cash-like investments only.
Current liabilities: Bills due within a year (payables, short-term debt, and similar).
Current: Current assets over current liabilities.
Quick: Acid-test ratio after removing inventory.
Cash ratio: Cash and equivalents over current liabilities.
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