Liquidity ratios
Can your business pay its short-term debts? Current, quick and cash ratios.
How it works
Current ratio = current assets / current liabilities (ideally > 1.5). Quick = (assets − inventory) / liabilities (> 1). Cash = cash / liabilities.
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Current assets (stock + receivables + cash)180000
- Of which inventory60000
- Of which cash35000
- Current liabilities120000
you get:
- Current ratio1.5
- Quick ratio1
- Cash ratio0.29
- Net working capital€60,000.00
Frequently asked questions
How does the “Liquidity ratios” tool work?
Current ratio = current assets / current liabilities (ideally > 1.5). Quick = (assets − inventory) / liabilities (> 1). Cash = cash / liabilities.
What do I need to enter?
Just fill in: current assets, of which inventory, of which cash, current liabilities. The result updates as you type.
Can you give an example?
Current assets (stock + receivables + cash): 180000; Of which inventory: 60000; Of which cash: 35000; Current liabilities: 120000 → Current ratio: 1.5; Quick ratio: 1.
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.