Calculator

Quick Ratio Calculator

Enter four balance-sheet figures, pick your industry, and get a sector-benchmarked verdict. All math is performed in your browser; nothing is sent to a server.

Inputs

All figures in $

Industry

Damodaran band for this sector: 1.2 to 2.5

Cash and equivalents

Marketable securities

Accounts receivable

Current liabilities

Worked-example presets

Acme SaaS Co. (illustrative example, not a real company). Numbers chosen to demonstrate the calculation on a software balance sheet.

Quick ratio (acid-test)

2.36

Healthy liquidity

Cash$12,000,000

+ Marketable securities$6,000,000

+ Accounts receivable$8,000,000

= Quick assets$26,000,000

/ Current liabilities$11,000,000

Sector band: 1.2 to 2.5 (Damodaran NYU Stern, Jan 2026)

Formula in use: Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities. Verified June 2026 against Corporate Finance Institute: quick ratio definition.

How to read the result

A quick ratio of 1.0 means current liabilities are fully covered by cash, marketable securities, and receivables (no inventory liquidation required). Anything above 1.5 is generally strong; anything below the Damodaran band for your industry is a yellow flag worth investigating alongside the cash conversion cycle.

Verified June 2026. Source: Subramanyam, Financial Statement Analysis, 11th Edition, Chapter 10 (pp. 499-505).

Sector benchmarks

Expected quick ratio across 12 industries

Full Damodaran NYU Stern working capital table with quick ratio interpretation per sector.

Methodology

Every source URL, every verification date

Damodaran dataset, textbook anchors, formula source, and risk flag for every claim.