Liquidity Ratio Calculator

This Liquidity Ratio Calculator on NJ CPA USA helps you quickly assess your company’s ability to cover short-term obligations. By entering key financial data, you can easily determine ratios like the current ratio and quick ratio, which are essential for evaluating financial health. Simplify your financial analysis with our intuitive tool.

How to Use this Calculator?

If you are analyzing a single company for one reporting period, enter the data in column A and click calculate to see the results displayed below. For comparing two companies or analyzing a single company over two reporting periods, use both column A (primary) and column B (secondary). The calculator will determine the percentage change for each data point and ratio with values in both columns, indicating whether there’s an increase or decrease.

Our Liquidity Ratio Calculator is designed for ease of use, enabling you to determine your company’s liquidity position quickly. Follow these steps to input the necessary financial data:

Current Assets: Enter the total value of your company’s assets that are expected to be converted into cash within a year. This includes cash, accounts receivable, inventory, and other short-term assets.

Current Liabilities: Input the total amount of your company’s debts or obligations that are due within a year. This includes accounts payable, short-term loans, and other immediate liabilities.

Inventory: Provide the total value of your company’s inventory, which is a component of current assets but is excluded from quick ratio calculations.

Liquidity Ratio Calculator

A B

Current Assets:

Current Liabilities:

Inventory:

Cash:

Cash Equivalents:

Significant Figures:

Results	A	B	Change
Current Ratio
Quick Ratio
Cash Ratio
Working Capital

Cash Equivalents: Include the value of assets that can be quickly converted into cash, such as marketable securities and treasury bills.

Using this information, our calculator will compute key liquidity ratios, including the current ratio and quick ratio, providing you with insights into your company’s financial health.

Liquidity Ratio Calculation Formula Used in Our Calculator

Our Liquidity Ratio Calculator employs the following formulas to assess your company’s liquidity:

Current Ratio:

Current Ratio =

Current Assets

Current Liabilities

Quick Ratio:

Quick Ratio =

Current Assets − Inventory

Current Liabilities

Also known as the acid-test ratio, the quick ratio provides a more stringent measure of liquidity by excluding inventory from current assets. It reflects your company’s ability to meet short-term obligations without relying on the sale of inventory.

By utilizing these formulas, our calculator delivers a clear picture of your company’s capacity to manage its short-term debts and maintain financial stability.

Why Use Our Liquidity Ratio Calculator

Understanding your company’s liquidity is crucial for maintaining financial health and ensuring you can meet short-term obligations. Our Liquidity Ratio Calculator on NJ CPA USA provides a fast, accurate, and user-friendly way to assess your financial position.

By entering essential data, you gain immediate insights into your liquidity ratios, helping you make informed decisions about cash flow management, debt repayment, and investment strategies.

Whether you’re a business owner, financial manager, or accountant, our calculator is an invaluable tool for evaluating and improving your company’s financial stability.