1 tool
Calculates the quick ratio, also known as the acid-test ratio, using basic financial inputs. The tool assesses a company's ability to cover its short-term liabilities with its most liquid assets. Users simply input values for current assets and inventory into designated fields to determine this crucial liquidity metric. This calculation provides an immediate snapshot of how well a business can meet its immediate obligations without relying on the sale of slower-moving stock. Financial analysts, students, and small business owners utilize this calculator to gauge short-term financial health. By monitoring the quick ratio, users can identify potential cash flow weaknesses or assess the strength of a company's liquidity position against industry benchmarks.
