Rytvae Consulting · Think Right · Invest Right
Quick Ratio Calculator
Result
Chart
Show formula & working
Quick ratio = (Current assets − Inventories − Prepaid expenses) ÷ Current liabilities
Typical lender reference: 1.0x or more — a reference point, not an approval criterion.Details
How this works
Stock can take months to sell and collect, so the quick ratio leaves it out.
It matters most for businesses carrying large or slow-moving inventories.
Frequently asked questions
Why remove prepaid expenses?
They will not turn into cash; they are services already paid for.
What if the quick ratio is below 1?
Common in trading and manufacturing; lenders read it together with the operating cycle.
Want your ratios read the way a lender reads them?
Classification, quasi-equity and one-off items all move the ratios. Talk to Rytvae before you approach lenders.