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:

### 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:

## 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