Overview

This is a ready-to-use Quick Ratio Excel template, which helps to indicate how well a company can pay off its short-term liabilities through its assets that can be easily converted into cash. This tool is available to download instantly and is a well-presented, easy to use calculator.

Also known as a liquidity ratio, or 'acid test', this is a very important tool which helps to calculate whether a business can meet short-term obligations. The alternative name of acid test for this type of calculation derives from the fact that it is used to evaluate whether a company has the instant resources to pay for liabilities with near-cash assets. The calculation for a quick ratio calculation is as follows: (Cash & Equivalents + Marketable Securities + Accounts Receivable) / Current Liabilities Prepaid expenses (unable to pay other liabilities) and inventory (not instant cash conversion) are not included in the calculation of quick ratio. This is therefore for those with a short term view of liquidity. This excel template contains 4 sections for input:
  • Cash
  • Marketable Securities
  • Accounts Receivable
  • Accounts Payable
Share
Reviews Add a review

More From Corporate Finance Institute®

Browse our top rated business templates. See All
restructuring financial model template preview 1 Restructuring Financial Model Template
234
0
This restructuring financial model template is used to demonstrate the financial interactions behind the restructuring process. Adjust this model to…
TMT Financial Model Template Preview TMT Financial Model Template
355
0
This TMT financial model template is used to value technology, media, and telecom firms. This model provides a template to…
bank financial model template preview 1 Bank Financial Model Template
326
0
This bank financial model template is used to value financial institutions group (FIG) companies. This is a comprehensive model that…
Synthetic Call Chart Option Profit/Loss Graph Maker
922
240
This free Option Profit/Loss Graph Maker allows the user to combine up to ten different types of options as well…
Directional Trading Strategies Template Directional Trading Strategies Template
742
0
The directional trading strategies template allow users to determine the profit when buying options. This template focuses on directional strategies…
HELOC Calculator Template Home Equity Line of Credit (HELOC) Calculator
439
106
This home equity line of credit (HELOC) calculator can calculate the maximum amount of loan a homeowner is eligible to…