Check working capital plus current, quick, and cash coverage from same-date balance sheet inputs.
$120,000 current assets / $80,000 current liabilities
Liquidity ratios are only balance sheet math. They do not prove cash will arrive on time, inventory will sell, receivables will be collected, or a lender will treat the business as safe.
Recent liquidity ratio checks will appear here.
Liquidity-ratio estimates stay in this browser tab. They do not audit statements, prove solvency, predict cash timing, value inventory, guarantee receivable collection, judge credit approval, test lender covenants, or replace accounting analysis.
Inputs and recent answers stay in this browser tab and are not sent to a server.
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.
Use same-date balance sheet numbers before deeper business analysis.
1.50 current ratio, 1.13 quick ratio, 0.50 cash ratio, and $40,000 working capital
1.60 current ratio, 0.82 quick ratio, 0.18 cash ratio, and $75,000 working capital
2.38 current ratio, 2.30 quick ratio, 1.75 cash ratio, and $55,000 working capital
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Plain-language answers about when to use the estimate, what your numbers mean, what is left out, and how privacy works.
Use it when you want to test the exact inputs on this page: Check whether short-term assets cover short-term liabilities. Compare current ratio, quick ratio, and cash ratio in one place. The result is a check against your assumptions, not proof that a lender, tax app, broker, platform, or provider will use the same number.
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.
There is no one perfect current ratio for every business. A 1.50 current ratio means current assets are 1.5 times current liabilities, but industry, season, credit terms, inventory quality, and cash timing all matter.
Current ratio includes inventory and prepaid expenses. Quick ratio removes them because they may not turn into cash quickly. An inventory-heavy shop can look fine on current ratio while its quick ratio warns that cash is tighter.
No. Cash ratio only compares cash plus marketable securities with current liabilities at one point in time. It does not show future sales, late receivables, surprise costs, loan rules, or bills that were left out of the balance sheet inputs.
In plain language: Current ratio = current assets / current liabilities. Working capital = current assets - current liabilities. Quick ratio = (current assets - inventory - prepaid expenses) / current liabilities. Cash ratio = (cash and equivalents + marketable securities) / current liabilities. Check that current assets and current liabilities come from the same balance sheet date. Then compare current ratio, quick ratio, cash ratio, and working capital together instead of trusting one number.
Current ratio uses all current assets. Quick ratio is stricter because it removes inventory and prepaid expenses. Cash ratio is stricter again because it only uses cash and marketable securities.
This is balance sheet math, not a financial statement audit. It does not judge credit approval, prove solvency, test lender covenants, predict cash timing, value inventory, guarantee receivable collection, handle seasonality, set industry benchmarks, or replace accounting advice. Use financial statements, cash-flow reports, lender covenant documents, industry benchmarks, and a qualified accountant before using liquidity ratios for lending, investing, hiring, or survival decisions.
Double-check inventory, prepaid expenses, cash, marketable securities, and receivables before relying on the result. A wrong balance sheet line can make the ratios look safer or weaker than they are.
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.