Accounting & Ratios

Quick Ratio

Measure liquid current assets relative to short-term liabilities, excluding inventory and prepayments.

Your numbers

Sample inputs are illustrative. Changing currency changes labels only.

Your result

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How to use this calculator

  1. Enter current assets, inventory, prepayments, current liabilities.
  2. Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
  3. Read the result with the assumptions below. Export details or save a second scenario to compare your choices.

Formula and method

Quick ratio = (current assets − inventory − prepayments) / current liabilities.

Assumptions and limitations

Inventory and prepayments must be included in current assets; neither can be counted twice.

Worked example

With current assets = 200000, inventory = 60000, prepayments = 10000, current liabilities = 100000, quick ratio is approximately 1.3.

What the result means

A quick ratio removes assets that may not be immediately available to pay bills.

Common questions

How should I interpret quick ratio?

A quick ratio removes assets that may not be immediately available to pay bills.

What should I check before using this result?

Inventory and prepayments must be included in current assets; neither can be counted twice.

Methodology and transparency

Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.

Background reference: openstax.org — financial method. FinanceMath implements its own calculator.