The quick ratio formula takes a companys current assets excluding inventory and divides them by its current liabilities. Quick assets refer to business assets that you can liquidate within 90 days. How To Calculate Acid Test Ratio Overview Formula And Example Here the Quick assets mean the Current assets minus all the inventories and minus all the prepaid expenses because only cash or near to cash. . In other words these are the assets you can convert to cash. This quick ratio calculator has 2 tabs each one offering a specific method to calculate the acid test ratio. The quick ratio is also known as the acid test ratio. After subtracting 50000 from current assets we find the companys quick asset value is 200000. How to Calculate the Quick Ratio. The quick ratio is a companys cash securities and accounts receivable divided by its current liabilities. The quick ratio is very. - By 1 st tab Method 1 you can d