Cash Ratio Calculator vs Quick Ratio Calculator
Two calculators for the same neighbourhood of questions. Here is what each measures, what you feed in, and where you'd reach for one over the other.
Cash Ratio Calculator
Measures a company's ability to pay off current liabilities using only cash and cash equivalents. Use it for the most conservative liquidity stress test of a business.
- Answers
- Cash Ratio
- Inputs
- Cash and Cash Equivalents, Current Liabilities
Quick Ratio Calculator
Calculate the quick ratio (acid-test ratio) — quick assets divided by current liabilities — for a conservative view of short-term liquidity that excludes inventory. Use it when assessing companies with significant inventory or any time you want a stress-test of whether short-term obligations can be paid without selling stock.
- Answers
- Quick Ratio
- Inputs
- Quick Assets, Current Liabilities
At a glance
| Cash Ratio Calculator | Quick Ratio Calculator | |
|---|---|---|
| Category | Accounting | Accounting |
| Answers | Cash Ratio | Quick Ratio |
| Inputs | 2 | 2 |
| Result unit | — | — |
When to use each
Measures a company's ability to pay off current liabilities using only cash and cash equivalents. Use it for the most conservative liquidity stress test of a business.
Calculate the quick ratio (acid-test ratio) — quick assets divided by current liabilities — for a conservative view of short-term liquidity that excludes inventory. Use it when assessing companies with significant inventory or any time you want a stress-test of whether short-term obligations can be paid without selling stock.