Canonical formula calculator
QUICK RATIO
The stricter liquidity test — can you pay short-term bills without selling inventory? The number lenders actually care about.
Cash, receivables, inventory, and other assets expected to convert to cash within 12 months.
The portion of current assets held as inventory or raw materials. Enter 0 if you have none.
Accounts payable, short-term debt, and other obligations due within 12 months.
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Optional — helps us match this calculation against relevant case studies (coming soon).
What this tells you
Quick ratio is the stricter cousin of current ratio. It measures whether you can cover short-term liabilities with cash, receivables, and other liquid assets — excluding inventory, because inventory cannot always be converted to cash quickly when you need it. Above 1.0 is healthy. Below 1.0 means without selling inventory you would have trouble meeting near-term obligations.
When to use it
Calculate quick ratio at month-end alongside current ratio. The gap between them tells you how much of your working capital is tied up in inventory. A current ratio of 2.0 and a quick ratio of 0.5 means most of your "liquidity" is actually inventory — which is fine for a retailer in season, and concerning for a SaaS business.
What it doesn’t tell you
Quick ratio still includes receivables, which can be slow to collect. For the strictest liquidity test, consider the cash ratio (cash only, divided by current liabilities). And like all balance-sheet ratios, this is a snapshot — your real liquidity depends on the timing of cash flows, not just the totals.
Coming soon
Cases, plays, and benchmarks for this metric will appear here as the Moonshot knowledge libraries grow. For now: log in to track your number over time and Moonshot will surface trend warnings when the substrate fills in.