Current Ratio & Quick Ratio Calculator for 2026
Calculate both your Current Ratio and Quick Ratio from your balance sheet to see how well your business can cover short-term liabilities.
How the Current Ratio & Quick Ratio Are Calculated
The current ratio divides all current assets by current liabilities. The quick ratio (acid test) is stricter — it excludes inventory and prepaid expenses so only assets convertible to cash within about 90 days are counted.
A current ratio between 1.5 and 3.0 is generally considered healthy; below 1.0 signals possible trouble covering short-term liabilities. A quick ratio of 1.0 or higher is typically considered healthy since it excludes inventory, which can be slow or discounted to sell in a pinch.
How to Use the Current Ratio & Quick Ratio Calculator
Enter Cash & Marketable Securities
Cash on hand and any short-term investments you could liquidate quickly.
Enter Accounts Receivable
Amounts owed to you by customers that are expected to be collected within the year.
Enter Inventory & Prepaid Expenses
Inventory value and any prepaid expenses — these count toward the current ratio but are excluded from the quick ratio.
Enter Current Liabilities
All obligations due within the next 12 months: accounts payable, short-term debt, accrued expenses.
Review both ratios
See your current ratio, quick ratio, and how each compares to healthy benchmark ranges.
Real-World Scenario Example
"A business has $30,000 cash, $10,000 in securities, $40,000 in receivables, $35,000 in inventory, $5,000 prepaid, and $60,000 in current liabilities."
Inputs
Result
Total Current Assets = $120,000, Current Ratio = 2.0, Quick Ratio = 1.33 — both ratios fall in healthy ranges.
Important Disclaimer
This calculator provides a point-in-time liquidity snapshot based on the balances you enter. Healthy ratio ranges vary by industry, so compare your results against peers in your own sector rather than a single universal target.
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