Finance
Calculate the quick ratio
=(B1-B2)/B3How it works in Excel
- B1 is current assets.
- B2 is inventory, which is taken out.
- B3 is current liabilities.
- Inventory is removed because it can be slow to turn into cash.
The idea in general
It is a stricter test: could the bills be paid without selling any stock?
What I assumed
- Current assets are in B1, inventory is in B2 and current liabilities are in B3.
Check the result on your own data before relying on it.