## About Quick Ratio Calculator (Formula)

A Quick Ratio calculator is a tool used to measure a company’s liquidity and ability to pay off its short-term debts. The Quick Ratio, also called the acid-test ratio, is calculated by dividing the sum of cash, cash equivalents, and marketable securities by the company’s current liabilities. The formula for calculating the Quick Ratio is:

Quick Ratio = (Cash + Cash Equivalents + Marketable Securities) / Current Liabilities

Where:

- Cash and cash equivalents are the sum of cash on hand and short-term investments
- Marketable securities are short-term investments that can be easily converted to cash
- Current liabilities are the company’s debts and financial obligations that are due within the next 12 months

A Quick Ratio of 1.0 or higher is considered to be healthy, indicating that the company has enough assets to cover its short-term debts. A Quick Ratio of less than 1.0 indicates that the company does not have enough assets to cover its short-term debts and may be in financial trouble.

Quick Ratio calculators are commonly used in finance and accounting to quickly and easily calculate the Quick Ratio for a given company. They can be found in spreadsheet software or as online calculators and can be used to calculate the Quick Ratio for a company based on its cash, cash equivalents, marketable securities, and current liabilities.