Quick Ratio = (Cash + Cash Equivalents + Marketable Securities + Accounts Receivable) ÷ Current Liabilities
Identify cash and cash equivalents
Identify marketable securities
Identify accounts receivable
Add cash, cash equivalents, marketable securities, and accounts receivable
Identify total current liabilities
Divide the total quick assets by current liabilities
Use the formula: Quick Ratio = Quick Assets ÷ Current Liabilities
Exclude inventory and prepaid expenses from quick assets
Interpret a ratio above 1 as stronger short-term liquidity
Interpret a ratio below 1 as weaker short-term liquidity