**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 \((CL)\):

## 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:

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.

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