What this calculator does
Liquidity ratios (current, quick & cash) works out three views of whether current assets can cover current liabilities. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaCurrent ratio = Current assets / Current liabilities; Quick ratio = (Current assets − Inventory − Prepaid expenses) / Current liabilities; Cash ratio = Cash & equivalents / Current liabilities
The inputs explained
| Field | What to enter |
|---|---|
| Current assets ($) | A number, measured in your currency. Starts at 450000. |
| Inventory ($) | A number, measured in your currency. Starts at 120000. |
| Prepaid expenses ($) | A number, measured in your currency. Starts at 20000. |
| Cash & equivalents ($) | A number, measured in your currency. Starts at 80000. |
| Current liabilities ($) | A number, measured in your currency. Starts at 300000. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with current assets
Every other input is held at the calculator’s starting values while current assets varies. Select any row to load that scenario into the calculator.