What is the Quick Ratio Calculator?

The Quick Ratio Calculator is a financial tool used by business owners, accountants, and analysts to assess a company’s short-term liquidity. By entering current assets, inventory, and current liabilities, the calculator determines the quick ratio, which indicates the company’s ability to pay off its short-term obligations without relying on the sale of inventory. This helps users understand financial stability and make informed decisions regarding cash management.

How to Use:

1. Enter Current Assets (PKR): Input all current assets including cash, receivables, and other liquid assets.
2. Enter Inventory (PKR): Input the value of inventory, which is excluded from the quick ratio.
3. Enter Current Liabilities (PKR): Input total short-term liabilities.
4. Click “Calculate”: The calculator computes the quick ratio and shows a liquidity status.
5. Review Result: The output displays current assets, inventory, liabilities, quick ratio, liquidity status (Excellent, Fair, Low), and the formula: Quick Ratio = (Current Assets − Inventory) ÷ Current Liabilities.