# Quick Ratio Calculator

Instructions: Use our Quick Ratio Calculator to compute the quick ratio $$(QR)$$ for a firm. You need to provide the current assets $$(CA)$$, the inventory $$(I)$$ and the current liabilities $$(CL)$$: Current Assets $$(CA)$$ = Inventory $$(I)$$ = Current Liabilities $$(CL)$$ =

## Quick Ratio Calculator

More about this quick ratio calculator that will help you interpret the results provided by this solver: The quick ratio corresponds to the ratio between the liquid current assets and current liabilities. This ratio is a measure of short term liquidity and it indicates how many times can current debt and liabilities be paid using only its liquid current assets. The quick ratio is computed as:

$QR = \displaystyle \frac{CA - I}{CL}$

What is the importance of the quick ratio? It is quite important, because the quick ratio measures the short term liquidity of a firm, but it corrects the current ratio by not considering assets that are not totally liquid in the short term, like inventories.

What is a good quick ratio? A good quick ratio will be greater than 1, but it is something that changes from industry to industry.

You can use also our current ratio calculator , which includes inventories in the liquid assets. Also, you may be interested in using our inventory turnover ratio calculator , in order to deal how a firm deals and how efficiently they deal with their inventories.