# Quick ratio

> Quick ratio is a liquidity and working-capital metric, calculated as (Cash and equivalents + Short-term investments + Accounts receivable) ÷ Current liabilities. The acid test. The shortcut (Current assets − Inventory − Prepaids) ÷ Current liabilities keeps other current assets in and reads higher — state which.

Source: https://lopifi.com/glossary/quick-ratio
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is quick ratio?** Quick ratio is a liquidity and working-capital metric, calculated as (Cash and equivalents + Short-term investments + Accounts receivable) ÷ Current liabilities.

## Formula

`(Cash and equivalents + Short-term investments + Accounts receivable) ÷ Current liabilities`

## Note

The acid test. The shortcut (Current assets − Inventory − Prepaids) ÷ Current liabilities keeps other current assets in and reads higher — state which

- **Category:** Liquidity & working capital
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)
- **Related:** accounts-receivable