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Quick Ratio helps you to determine your immediate ability to pay your financial obligations. Check FAQs
QR=CA-ILRCL
QR - Quick Ratio?CA - Current Assets?ILR - Inventory of Liquidity Ratio?CL - Current Liabilities?

Quick Ratio Example

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With units
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Here is how the Quick Ratio equation looks like with Values.

Here is how the Quick Ratio equation looks like with Units.

Here is how the Quick Ratio equation looks like.

2.6485Edit=79500Edit-45Edit30000Edit
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HomeIcon Home » Category Financial » Category Business » Category Financial Ratios » fx Quick Ratio

Quick Ratio Solution

Follow our step by step solution on how to calculate Quick Ratio?

FIRST Step Consider the formula
QR=CA-ILRCL
Next Step Substitute values of Variables
∴ QR=79500-4530000
Next Step Prepare to Evaluate
∴ QR=79500-4530000
LAST Step Evaluate
∴QR=2.6485

Quick Ratio Formula Elements

Variables
Quick Ratio
Quick Ratio helps you to determine your immediate ability to pay your financial obligations.
Symbol: QR
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Quick RatioOpen Variable
Current Assets
Current assets are balance sheet accounts that represent the value of all assets that can reasonably expect to be converted into cash within one year.
Symbol: CA
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Current AssetsOpen Variable
Inventory of Liquidity Ratio
Inventory of Liquidity Ratio is the goods and materials that a business holds for the ultimate goal of resale.
Symbol: ILR
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Inventory of Liquidity RatioOpen Variable
Current Liabilities
Current Liabilities are the company debts or obligations that are due within one year.
Symbol: CL
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Current LiabilitiesOpen Variable

Other Formulas to find Quick Ratio

​Go Business Quick Ratio
QR=CA-ILRCL

Other formulas in Liquidity Ratios category

​Go Free Cash Flow
FCF=CFO-CAPEX
​Go Free Cash Flow to Firm
FCFF=CFO+(Int⋅(1-tax))-CAPEX
​Go Debt to Assets Ratio
DA=TLTA
​Go Debt to Equity Ratio
RD/E=TLTSE⋅100

How to Evaluate Quick Ratio?

Quick Ratio evaluator uses Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities to evaluate the Quick Ratio, Quick Ratio helps you to determine your immediate ability to pay your financial obligations. Quick Ratio is denoted by QR symbol.

How to evaluate Quick Ratio using this online evaluator? To use this online evaluator for Quick Ratio, enter Current Assets (CA), Inventory of Liquidity Ratio (ILR) & Current Liabilities (CL) and hit the calculate button.

FAQs on Quick Ratio

What is the formula to find Quick Ratio?
The formula of Quick Ratio is expressed as Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities. Here is an example- 26.485 = (79500-45)/30000.
How to calculate Quick Ratio?
With Current Assets (CA), Inventory of Liquidity Ratio (ILR) & Current Liabilities (CL) we can find Quick Ratio using the formula - Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities.
What are the other ways to Calculate Quick Ratio?
Here are the different ways to Calculate Quick Ratio-
  • Quick Ratio=(Current Assets-Inventory of Liquidity Ratio)/Current LiabilitiesOpenImg
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