Acid Test, Quick Ratio Calculator

Written by:Abraham A.
Location:Financial Calculators

Finance.ThinkAndDone.com provides you online and windows calculators to calculate acid test quick and ratio when you provide current liabilities, inventories and current assets.

Location: Financial Calculators

Acid Test, Quick Ratio Calculator

Developed by:Emma A.
Location:Financial Calculators
type in the authorization code in the box located below:

Results

Acid Test (Quick) Ratio = 0.31

Input Data

Please enter the total current assets  
Please enter the total inventories  
Please enter the total liabilities  

Instructions

To use this online calculator to calculate acid test quick ratio, you need to type in total current assets, inventories and total current liabilities.
Let us say we have wanted to find Acid Test Quick Ratio for Sears for the year ending at 31 Dec 2010 where its total current assets for the fiscal year 2010 equalled $11438 million dollars, its total inventories for the same time period equalled $8705 million dollars and its total current liabilities for the same time period equalled $8786 million dollars

  • In the 1st box for current assets, type in 11438000000
  • In the 2nd box for inventories, type in 8705000000
  • In the 3rd box for current liabilities, type in 8786000000
  • Click on the Calculate Quick Ratio button to see the resulting values for Acid Test Quick Ratio of 0.31.
      • This means that there are $0.31 to cover for each $1 of liabilities. That is a very low quick ratio for Sears and the short terms lenders would be concerned about the chances of getting their money from Sears if Sears were to go solvent.
      Location: Financial Calculators