Liquidity Ratio Calculator (Current & Quick Ratio)

Balance Sheet Inputs

Current Assets

Cash & Equivalents ($)

Accounts Receivable ($)

Inventory ($)

Excluded from quick ratio

Prepaid Expenses ($)

Other Current Assets ($)

Current Liabilities

Total Current Liabilities ($)

AP, accrued liabilities, current portion of LTD

Current Ratio

1.75

Healthy

Current Assets / Current Liabilities

Quick Ratio

1.14

Healthy

(Cash + AR) / Current Liabilities

Cash Ratio

0.47

Adequate

Cash & Equivalents / Current Liabilities

Asset & Liability Breakdown

Current Assets

Cash & Equivalents$85,000

Accounts Receivable$120,000

Inventory$95,000

Prepaid Expenses$15,000

Total Current Assets$315,000

Current Liabilities

Total Current Liabilities$180,000

Working Capital

+$135,000

Current Assets − Current Liabilities — positive working capital means the business can cover short-term obligations

Industry Benchmarks

Industry	Current Ratio	Quick Ratio	Notes
Retail	1.0–1.5	0.3–0.5	Inventory-heavy; low quick ratio is normal
Manufacturing	1.5–2.5	0.8–1.2	Longer production cycles need more cushion
Services / SaaS	1.5–3.0	1.2–2.5	Little inventory; quick ≈ current
Distribution	1.2–2.0	0.5–0.9	High AR and inventory turnover
Construction	1.2–1.8	0.9–1.3	Progress billing affects AR timing
General target	≥ 1.5	≥ 1.0	Minimum lenders typically want to see

Why the quick ratio matters more than the current ratio

Inventory can't always be liquidated quickly at full value. The quick ratio strips it out — leaving only cash and receivables. Lenders and acquirers focus on quick ratio for this reason. A current ratio of 2.0 with a quick ratio of 0.4 is a red flag: the business is liquid on paper but inventory-dependent in practice.