Current Ratio Calculator

Calculate current ratio, quick ratio, cash ratio and working capital from balance-sheet lines for current assets and current liabilities.

Interactive calculator · Method CURRENT-RATIO-1.0 · Last reviewed: 2026-11-04

Calculate your scenario

Current ratio = total current assets ÷ total current liabilities.

Your inputs

Try an example

Cash and marketable securities ($)

Accounts receivable ($)

Inventory ($)

Prepaid and other current assets ($)

Accounts payable ($)

Short-term debt and current portion of long-term debt ($)

Accrued expenses ($)

Other current liabilities ($)

Default worked example. Edit the inputs to calculate your scenario.

Default worked example

Current ratio 1.90

Quick ratio 1.00

Cash ratio 0.40

Working capital $90,000.00

Total current assets $190,000.00

Total current liabilities $100,000.00

Current ratio = $190,000.00 ÷ $100,000.00 = 1.90; quick = $100,000.00 ÷ $100,000.00 = 1.00; working capital = $90,000.00.

How to use the calculator

Copy each current asset and current liability line from the same balance sheet date. Put short-term investments with cash, and include the current portion of long-term debt.

What the result means

Current assets of $190,000 against $100,000 of current liabilities give a current ratio of 1.90 and $90,000 of working capital; without inventory and prepaid items the quick ratio is 1.00.

Formula and units

Current ratio = total current assets ÷ total current liabilities. Quick ratio = (cash and marketable securities + receivables) ÷ current liabilities, leaving out inventory and prepaid items. Cash ratio = cash and marketable securities ÷ current liabilities. Working capital = current assets − current liabilities.

Worked examples

$190,000 current assets vs $100,000 liabilities: Cash and marketable securities: 40000 $; Accounts receivable: 60000 $; Inventory: 80000 $; Prepaid and other current assets: 10000 $; Accounts payable: 50000 $; Short-term debt and current portion of long-term debt: 30000 $; Accrued expenses: 15000 $; Other current liabilities: 5000 $.
Example result: Current ratio: 1.90; Quick ratio: 1.00; Cash ratio: 0.40; Working capital: $90,000.00; Total current assets: $190,000.00; Total current liabilities: $100,000.00.

Inventory-heavy balance sheet at 1.00: Cash and marketable securities: 5000 $; Accounts receivable: 20000 $; Inventory: 150000 $; Prepaid and other current assets: 5000 $; Accounts payable: 90000 $; Short-term debt and current portion of long-term debt: 60000 $; Accrued expenses: 20000 $; Other current liabilities: 10000 $.
Example result: Current ratio: 1.00; Quick ratio: 0.14; Cash ratio: 0.03; Working capital: $0.00; Total current assets: $180,000.00; Total current liabilities: $180,000.00.

Limitations and common mistakes

Ratios describe one balance-sheet date; they say nothing about cash-flow timing, collectability of receivables or how fast inventory sells. There is no universal healthy level: compare with the same company over time or with peers you choose. Some analysts include other liquid assets in the quick ratio; this version uses cash, marketable securities and receivables only.

Mixing dates or including long-term items (equipment, long-term debt beyond the next 12 months) inflates or deflates the ratios.

Sources and assumptions

Method CURRENT-RATIO-1.0; last formula review 2026-11-04. Sources and their supported claims. Calculation methodology.