Code tool

Quick Ratio Calculator

Enter same-date balance-sheet amounts and a currency label.

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A QUICK WALKTHROUGH

How to use this tool

  1. Enter nonnegative current assets.
  2. Enter inventory from zero through current assets.
  3. Enter positive current liabilities and calculate both ratios.

Formula

Quick assets = A − V; quick ratio = (A − V) ÷ L; current ratio = A ÷ L.

Scope

A and V are nonnegative, V cannot exceed A, and L is positive. This model subtracts inventory only and still includes other current assets such as prepayments. It is not a stronger repayment guarantee and has no good/bad threshold.

GOOD TO KNOW

Common questions

Does this remove prepayments too?

No. Only inventory is subtracted; other current assets remain in quick assets.

Is a higher ratio automatically safe?

No. The ratios are arithmetic snapshots and are not a repayment guarantee or a universal threshold.