The formula to calculate Quick Ratio (QR) is:
\[ QR = \frac{CA - ILR}{CL} \]
Where:
The Quick Ratio helps you to determine your immediate ability to pay your financial obligations.
Current Assets are balance sheet accounts that represent the value of all assets that can reasonably be expected to be converted into cash within one year.
Inventory of Liquidity Ratio is the goods and materials that a business holds for the ultimate goal of resale.
Current Liabilities are the company debts or obligations that are due within one year.
Let's assume the following values:
Using the formula:
\[ QR = \frac{CA - ILR}{CL} \]
Evaluating:
\[ QR = \frac{79500 - 45}{30000} \]
The Quick Ratio is 2.6485.
| Current Assets (CA) | Inventory of Liquidity Ratio (ILR) | Current Liabilities (CL) | Quick Ratio (QR) |
|---|---|---|---|
| 70000 | 40 | 25000 | 2.7984 |
| 70000 | 40 | 30000 | 2.3320 |
| 70000 | 40 | 35000 | 1.9989 |
| 70000 | 45 | 25000 | 2.7982 |
| 70000 | 45 | 30000 | 2.3318 |
| 70000 | 45 | 35000 | 1.9987 |
| 70000 | 50 | 25000 | 2.7980 |
| 70000 | 50 | 30000 | 2.3317 |
| 70000 | 50 | 35000 | 1.9986 |
| 71000 | 40 | 25000 | 2.8384 |
| 71000 | 40 | 30000 | 2.3653 |
| 71000 | 40 | 35000 | 2.0274 |
| 71000 | 45 | 25000 | 2.8382 |
| 71000 | 45 | 30000 | 2.3652 |
| 71000 | 45 | 35000 | 2.0273 |
| 71000 | 50 | 25000 | 2.8380 |
| 71000 | 50 | 30000 | 2.3650 |
| 71000 | 50 | 35000 | 2.0271 |
| 72000 | 40 | 25000 | 2.8784 |
| 72000 | 40 | 30000 | 2.3987 |
| 72000 | 40 | 35000 | 2.0560 |
| 72000 | 45 | 25000 | 2.8782 |
| 72000 | 45 | 30000 | 2.3985 |
| 72000 | 45 | 35000 | 2.0559 |
| 72000 | 50 | 25000 | 2.8780 |
| 72000 | 50 | 30000 | 2.3983 |
| 72000 | 50 | 35000 | 2.0557 |
| 73000 | 40 | 25000 | 2.9184 |
| 73000 | 40 | 30000 | 2.4320 |
| 73000 | 40 | 35000 | 2.0846 |
| 73000 | 45 | 25000 | 2.9182 |
| 73000 | 45 | 30000 | 2.4318 |
| 73000 | 45 | 35000 | 2.0844 |
| 73000 | 50 | 25000 | 2.9180 |
| 73000 | 50 | 30000 | 2.4317 |
| 73000 | 50 | 35000 | 2.0843 |
| 74000 | 40 | 25000 | 2.9584 |
| 74000 | 40 | 30000 | 2.4653 |
| 74000 | 40 | 35000 | 2.1131 |
| 74000 | 45 | 25000 | 2.9582 |
| 74000 | 45 | 30000 | 2.4652 |
| 74000 | 45 | 35000 | 2.1130 |
| 74000 | 50 | 25000 | 2.9580 |
| 74000 | 50 | 30000 | 2.4650 |
| 74000 | 50 | 35000 | 2.1129 |
| 75000 | 40 | 25000 | 2.9984 |
| 75000 | 40 | 30000 | 2.4987 |
| 75000 | 40 | 35000 | 2.1417 |
| 75000 | 45 | 25000 | 2.9982 |
| 75000 | 45 | 30000 | 2.4985 |
| 75000 | 45 | 35000 | 2.1416 |
| 75000 | 50 | 25000 | 2.9980 |
| 75000 | 50 | 30000 | 2.4983 |
| 75000 | 50 | 35000 | 2.1414 |
| 76000 | 40 | 25000 | 3.0384 |
| 76000 | 40 | 30000 | 2.5320 |
| 76000 | 40 | 35000 | 2.1703 |
| 76000 | 45 | 25000 | 3.0382 |
| 76000 | 45 | 30000 | 2.5318 |
| 76000 | 45 | 35000 | 2.1701 |
| 76000 | 50 | 25000 | 3.0380 |
| 76000 | 50 | 30000 | 2.5317 |
| 76000 | 50 | 35000 | 2.1700 |
| 77000 | 40 | 25000 | 3.0784 |
| 77000 | 40 | 30000 | 2.5653 |
| 77000 | 40 | 35000 | 2.1989 |
| 77000 | 45 | 25000 | 3.0782 |
| 77000 | 45 | 30000 | 2.5652 |
| 77000 | 45 | 35000 | 2.1987 |
| 77000 | 50 | 25000 | 3.0780 |
| 77000 | 50 | 30000 | 2.5650 |
| 77000 | 50 | 35000 | 2.1986 |
| 78000 | 40 | 25000 | 3.1184 |
| 78000 | 40 | 30000 | 2.5987 |
| 78000 | 40 | 35000 | 2.2274 |
| 78000 | 45 | 25000 | 3.1182 |
| 78000 | 45 | 30000 | 2.5985 |
| 78000 | 45 | 35000 | 2.2273 |
| 78000 | 50 | 25000 | 3.1180 |
| 78000 | 50 | 30000 | 2.5983 |
| 78000 | 50 | 35000 | 2.2271 |
| 79000 | 40 | 25000 | 3.1584 |
| 79000 | 40 | 30000 | 2.6320 |
| 79000 | 40 | 35000 | 2.2560 |
| 79000 | 45 | 25000 | 3.1582 |
| 79000 | 45 | 30000 | 2.6318 |
| 79000 | 45 | 35000 | 2.2559 |
| 79000 | 50 | 25000 | 3.1580 |
| 79000 | 50 | 30000 | 2.6317 |
| 79000 | 50 | 35000 | 2.2557 |
| 80000 | 40 | 25000 | 3.1984 |
| 80000 | 40 | 30000 | 2.6653 |
| 80000 | 40 | 35000 | 2.2846 |
| 80000 | 45 | 25000 | 3.1982 |
| 80000 | 45 | 30000 | 2.6652 |
| 80000 | 45 | 35000 | 2.2844 |
| 80000 | 50 | 25000 | 3.1980 |
| 80000 | 50 | 30000 | 2.6650 |
| 80000 | 50 | 35000 | 2.2843 |