Quick Ratio
Can you pay your bills if you had to right now? This is stricter than Current Ratio: it only counts cash and money owed to you, not inventory.
- How it's worked out
- (Current Assets − Inventory) / Current Liabilities
- Which way is better
- Higher is betterHigher is better for cash.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
Related measures
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