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Business Calculators

Quick Ratio Calculator

Verified formula Updated Jun 2026 Private — runs on your device

Enter details
Verified formula Private

Quick ratio (acid test)

1.00

Quick assets
₹10,00,000

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Quick Ratio Calculator

The Quick Ratio Calculator works out your quick ratio (acid test), along with 1 related figure in an instant. Enter current assets, inventory and current liabilities and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the current assets.
  2. Enter the inventory.
  3. Enter the current liabilities.
  4. Read off your quick ratio (acid test), together with quick assets — the calculator updates automatically, with no button to press.

Formula

The Quick Ratio Calculator uses the formula:

Quick ratio (acid test) = (Current assets - Inventory) ÷ Current liabilities

Worked example

For example, with current assets of ₹1,500,000, inventory of ₹500,000 and current liabilities of ₹1,000,000, the quick ratio (acid test) is 1.00.

Inputs used
Current assets ₹1,500,000
Inventory ₹500,000
Current liabilities ₹1,000,000
Results
Quick ratio (acid test) 1.00
Quick assets ₹10,00,000

Results are estimates for educational use, not professional advice.

Key terms explained

Ratio
A comparison of two quantities showing how many times one contains the other.

Frequently asked questions

The quick ratio, or acid-test, is (current assets − inventory) ÷ current liabilities. With 15,00,000 assets, 5,00,000 inventory and 10,00,000 liabilities it is 1.0.

Inventory can be slow or hard to sell at full value. Removing it gives a tougher test of whether a business can pay its bills with cash and near-cash assets.

A quick ratio of 1 or more is usually seen as healthy, meaning quick assets at least cover current liabilities. Norms vary by industry.

The current ratio includes inventory; the quick ratio leaves it out, so the quick ratio is always equal to or lower than the current ratio.

The Quick Ratio Calculator uses the formula: Quick ratio (acid test) = (Current assets - Inventory) ÷ Current liabilities. For example, with current assets of ₹1,500,000, inventory of ₹500,000 and current liabilities of ₹1,000,000, the quick ratio (acid test) is 1.00.

Enter the current assets. Enter the inventory. Enter the current liabilities. Read off your quick ratio (acid test), together with quick assets — the calculator updates automatically, with no button to press.

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