Small Business Calculator
How to use this calculator
The balance sheet from your latest financial statement holds the numbers you'll need to calculate your company's quick ratio. Find the entries for total current assets, inventories and total current liabilities
- Fill in total current assets.
- Fill in current inventory.
- Fill in total current liabilities.
- Press "calculate."
Now you know where you stand and have a basis for comparison with previous years. A quick ratio of 1.0:1 means you have a dollar's worth of easily convertible assets for each dollar of your current liabilities. Though acceptable ratios can vary from industry to industry, a ratio of 1.0:1 is generally acceptable to most creditors. Comparing today's quick ratio to quick ratios calculated from previous financial statements can give you a hint of developing trends in your company. While changes in ratios don't automatically spell trouble, uncovering the reasons for changes can help you find ways to nip potential problems in the bud.