## Quick Ratio Calculator

A Quick Ratio Calculator is a tool used to assess a company’s short-term liquidity and ability to meet its immediate financial obligations. It measures the company’s ability to cover its current liabilities using its most liquid assets.

### Formula

The formula for calculating the Quick Ratio is: Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.

### Example

For example, if a company has $50,000 in cash, $20,000 in marketable securities, $30,000 in accounts receivable, and $60,000 in current liabilities, the Quick Ratio would be: Quick Ratio = ($50,000 + $20,000 + $30,000) / $60,000 = 1.33.

In this case, the company’s Quick Ratio is 1.33, indicating that it has $1.33 of liquid assets available to cover each dollar of current liabilities. A higher Quick Ratio suggests better short-term liquidity and a lower risk of financial distress.