Use this free liquidity ratios calculator to estimate working capital, current ratio, quick ratio, and cash ratio from balance sheet inputs.
$120,000 current assets / $80,000 current liabilities
Liquidity ratios are only as good as the balance sheet numbers entered and do not prove that cash will arrive on time.
Check whether short-term assets cover short-term liabilities.
Compare current ratio, quick ratio, and cash ratio in one place.
Explain why inventory can make current ratio look stronger than quick ratio.
Review balance sheet liquidity before deeper business analysis.
Current, quick, and cash ratios
Quick ratio difference
Higher cash ratio
Plain-language answers about when to use the estimate, what your numbers mean, what is left out, and how privacy works.
Use it for early planning and side-by-side comparisons, especially for tasks like these: Check whether short-term assets cover short-term liabilities. Compare current ratio, quick ratio, and cash ratio in one place. Treat the answer as a planning estimate, not a final quote.
Current assets means assets expected to turn into cash or be used within about a year. Current liabilities means bills and obligations expected to be paid within about a year. Inventory and prepaid expenses means items removed from quick ratio because they may not quickly become cash. Cash, marketable securities, and receivables means more liquid items used to understand immediate payment strength.
In plain language: The calculator divides current assets by current liabilities for current ratio, removes inventory and prepaid expenses for quick ratio, and compares cash plus marketable securities with current liabilities for cash ratio. If the result seems too high or too low, first check whether each field expects a monthly amount, annual amount, dollar value, or percent.
Read the main answer first, then use the supporting lines to see why the answer moved. For finance calculators, the extra lines often explain interest, tax, fees, principal, payment timing, or totals paid over time. Those pieces matter because two results can look close at first but cost very different amounts later.
This does not audit financial statements, judge creditworthiness, predict cash timing, value inventory, or replace financial analysis by a qualified professional. Real finance decisions can also depend on fees, timing, local rules, credit details, and provider-specific terms.
Check the rate, time period, compounding or payment frequency, and whether the value is before tax or after tax. A common mistake is mixing monthly and yearly numbers, which can make a finance answer look believable even when it is off by a lot.
Quick ratio removes inventory and prepaid expenses from current assets. The idea is simple: those items may be useful, but they might not turn into cash fast enough to pay near-term bills.
Not always. A very low ratio can warn about payment pressure, but a very high ratio can also mean cash or assets are sitting unused. Compare ratios with the business type, season, and trend over time.
No. The calculator runs in your browser tab. Recent answers stay only on the page while you use it, and they are not sent to a server.