Quick Ratio (Acid-Test)
Formula
(Cash + Short-Term Investments + Receivables) / Current Liabilities
Interactive Calculator
| Component | Value |
|---|---|
| Cash | |
| Short-Term Investments | |
| Receivables | |
| Current Liabilities | |
| Quick Ratio | — |
CategoryLiquidity
ComponentsQuick Ratio; Cash; Short-Term Investments; Receivables; Current Liabilities
Example(100K + 50K + 150K) / 250K = 1.2
Related Subjects
Components
- CashIncluded in the Acid-Test numerator
- Accounts ReceivableIncluded in the Acid-Test numerator
- Short-Term InvestmentsIncluded in the Acid-Test numerator
Related
- Cash RatioEven stricter version — drops receivables too
- Working CapitalSame liquidity concern, measured in dollars not a ratio
Contrast
- Current RatioAcid-Test excludes inventory; Current Ratio includes it
Reported On
- Balance SheetAcid-Test inputs come from the balance sheet
Used In
- Financial AccountingAcid-Test is a financial accounting ratio
External Links
- Quick ratio — Wikipedia