Quick Ratio Template

Written by CFI Team

Read Time 2 minutes

Over 2 million + professionals use CFI to learn accounting, financial analysis, modeling and more. Unlock the essentials of corporate finance with our free resources and get an exclusive sneak peek at the first module of each course. Start Free

Quick Ratio Template

This quick ratio template helps you calculate the quick ratio given the amount of cash, marketable securities, accounts receivable, and accounts payable.

Below is a screenshot of the quick ratio template:

Quick Ratio Template Screenshot

Download the Free Template

Enter your name and email in the form below and download the free template now!

The Quick Ratio, also known as the Acid-test or liquidity ratio, measures the ability of a business to pay its short-term liabilities by having assets that are readily convertible into cash. These assets are, namely, cash, marketable securities, and accounts receivable. These assets are known as “quick” assets since they can quickly be converted into cash.

The Quick Ratio Formula

Quick Ratio = (Cash & equivalents + marketable securities + accounts receivable) / Current liabilities

Or, alternatively,

Quick Ratio = (Current Assets – Inventory – Prepaid expenses) / Current Liabilities

Generally speaking, the ratio includes all current assets, except:

Prepaid expenses – because they can not be used to pay other liabilities
Inventory – because it may take too long to convert inventory to cash to cover pressing liabilities

As you can see, the ratio is clearly designed to assess companies where short-term liquidity is an important factor, and hence it is commonly referred to as the Acid Test.

More Free Templates

For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation, and Word document templates.

Additional Resources

CFI is a global provider of financial modeling courses and of the FMVA Certification. CFI’s mission is to help all professionals improve their technical skills. If you are a student or looking for a career change, the CFI website has many free resources to help you jumpstart your Career in Finance. If you are seeking to improve your technical skills, check out some of our most popular courses. Below are some additional resources for you to further explore:

The Financial Modeling Certification

Analyst Certification FMVA® Program

The Financial Modeling Certification

Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.

A well rounded financial analyst possesses all of the above skills!

Additional Questions & Answers

CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.

In order to become a great financial analyst, here are some more questions and answers for you to discover:

Excel Tutorial

The Financial Modeling Certification

Launch CFI’s Excel Course now

to take your career to the next level and move up the ladder!