To calculate a company’s quick ratio, divide the value of its most liquid assets (i.e., those that can be converted to cash in under three months) by the value of its current liabilities (i.e ...

In cell B5, input the formula "=B3/B4" to divide your assets by your liabilities, and the calculation for the current ratio will be displayed. As an example, let's say that a small business ...

Since the quick ratio doesn’t include inventory in its calculation, it may be a better liquidity indicator in some situations. Similarly, not all companies have stable sales over the course of ...