Quick Ratio Calculator Online

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Quick Ratio Calculator

Quick Ratio Calculator

The quick ratio (acid-test ratio) is Equal to Cash and Cash Equivalent(INR) added marketable securities(INR) added receivable(INR) divided current liabilities(INR).  The value of a quick ratio – one of the simple liquidity indicators used in corporate finance to assess the liquidity of a company.

Formula us,

quick_ratio = (cash_and_cash_equivalent + marketable_securities + accounts_receivable) / current_liabilities

Let us consider,

  1. In balance sheet prepared in accordance with the IFRS (International Financial Reporting Standards), in the part concerning current assets, you should find positions “Cash and Cash Equivalents”, “Investments in Financial assets due within one year” (this position is more or less the same as “Marketable securities”) and “Accounts Receivable”.
  2. In the part of a balance sheet concerning the liabilities find the position “Current Liabilities”. They are the sum of accounts payable, current income tax payable, current portion of loans payable, short-term provisions and other current liabilities.
Example for Quick Ratio
quick_ratio = (cash_and_cash_equivalent + marketable_securities + accounts_receivable) / current_liabilities
Cash and Cash equivalent (5000) , Marketable securities (7000) , Account Receivable (2000) , Current liabilities(4000).
Quick Ratio = (5000 + 7000 + 2000 )/ 4000
The answer is Quick Ratio = 3.5 

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