# Quick Ratio Calculator

The Quick Ratio calculator can be used to derive the quick ratio. You may choose between the following two methods in order to calculate the quick ratio:

### Method 1:

The first method is based on the following formula:

```                        Cash & Cash Equivalent + Marketable Securities + Accounts Receivable
Quick Ratio  =                      Current Liabilities```

Enter your values in the calculator:

Cash and Cash Equivalent: Marketable Securities: Accounts Receivable: Current Liabilities:

### Method 2:

The second method is based on the following formula:

```                        Current Assets - Inventory - Prepaid Expenses
Quick Ratio  =           Current Liabilities```

Enter your values in the calculator:

Current Assets: Inventory: Prepaid Expenses: Current Liabilities:

## How to Use the Quick Ratio Calculator

### Method 1:

Let’s now review a simple example to see how to use the calculator.

Suppose that your goal is to derive the quick ratio, given the following information:

• Cash and Cash Equivalent = 15000
• Marketable Securities = 10000
• Accounts Receivable = 2500
• Current Liabilities = 23000

Plug the above values in the calculator, and then click on the ‘Calculate Quick Ratio‘ button:

You’ll then get the quick ratio of 1.196:

You could also derive the quick ratio manually using this formula:

```                        Cash & Cash Equivalent + Marketable Securities + Accounts Receivable
Quick Ratio  =                      Current Liabilities```

Plug the values in the formula, and you’ll get the same quick ratio of 1.196:

```                        15000 + 10000 + 2500
Quick Ratio  =        23000              = 1.196```

### Method 2:

Alternatively, let’s say that your goal is to calculate the quick ratio, based on the information below:

• Current Assets = 31000
• Inventory = 2500
• Prepaid Expenses = 1000
• Current Liabilities = 23000

Plug the values in the calculator, and then press on the button to get the quick ratio:

You’ll then get the quick ratio of 1.196:

Alternatively, you could derive the quick ratio using the formula below:

```                        Current Assets - Inventory - Prepaid Expenses
Quick Ratio  =           Current Liabilities```

You’ll get the same quick ratio of 1.196:

```                        31000 - 2500 - 1000
Quick Ratio  =        23000           = 1.196```