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
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