Liquidity Ratios Calculator
Compute the standard short-term liquidity metrics — current ratio, quick (acid-test) ratio, cash ratio, and working capital — from balance-sheet figures.
Inputs explained
- Current assets — Total assets convertible to cash within a year.
- Inventory — Inventory value, excluded from the quick ratio.
- Cash & equivalents — Cash and near-cash holdings, used for the cash ratio.
- Current liabilities — Obligations due within a year. Must be greater than zero.
How to use it
- Fill in the fields above — each input has a hint describing exactly what to enter
- Press Calculate to get your result instantly, right on this page
- Copy the result, save the tool to favorites, or share and embed it anywhere
Understanding the result
Example: With $50,000 current assets, $20,000 inventory, and $25,000 current liabilities: current ratio 2, quick ratio 1.2, working capital $25,000.
Frequently asked questions
Why does the quick ratio exclude inventory while the current ratio includes it? The quick (acid-test) ratio measures only assets that can be converted to cash almost immediately, and inventory can take time to sell, so subtracting it gives a stricter view of short-term solvency than the current ratio.
What does it mean if working capital is negative? Negative working capital means current liabilities exceed current assets, signaling the business may struggle to cover short-term obligations without raising additional financing or selling assets.
Is the Liquidity Ratios Calculator free to use? Yes — it is completely free, with no sign-up, no download and no usage limits. You can use it as often as you need.
Is my data private? Yes. The calculation runs entirely in your browser — the values you enter are never sent to our servers, stored or shared with anyone.
What information do I need? Just the following: Current assets, Inventory, Cash & equivalents, Current liabilities. Each field includes a hint explaining exactly what to enter.
Can I use it on my phone? Yes — the tool is fully responsive and works on any device, and the same calculator is available in the EasyWorkCalcs mobile app.
Privacy
Everything you enter into the Liquidity Ratios Calculator is processed entirely in your browser. Nothing is uploaded, stored or shared — your data stays on your device.