Quick ratio calculator

The quick ratio strips inventory and prepaid expenses out of current assets because neither turns into cash on demand, then divides what is left by the bills due within a year. It is a snapshot at one date, not a forecast, and it knows nothing about the quality of receivables: a receivable that will never collect still counts as quick. The reading bands here are the common textbook cut-offs, 1.0 strong and 0.5 adequate, not a rule; industries differ, and a business with committed credit lines can run lower safely.