Calculate the quick ratio (also known as the acid-test ratio), a more stringent measure of liquidity that excludes inventory from current assets.

This ratio is also referred to as the Acid Test Ratio.

The quick ratio is calculated by subtracting inventory from current assets and then dividing the result by current liabilities. It provides insight into a company’s ability to cover its short-term liabilities using its most liquid assets without relying on inventory.

The formula is as follows:

\[\text{Quick Ratio} = (\text{Cash and Cash Equivalents} + \text{Short Term Investments} + \text{Accounts Receivable}) / \text{Current Liabilities}\]

Also known as: acid-test ratio, liquid ratio.

No programming experience? With the Finance Toolkit MCP server, AI assistants such as Claude and ChatGPT can calculate the Quick Ratio for you. Just ask in plain English.

Calculate the Quick Ratio in Python

The Quick Ratio is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_quick_ratio as shown below.

from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

quick_ratios = toolkit.ratios.get_quick_ratio()

Which returns:

  2021 2022 2023 2024 2025
AAPL 0.7086 0.4967 0.6267 0.5589 0.5704
TSLA 0.9957 0.9411 1.1341 1.4219 1.5335

Parameters

get_quick_ratio accepts the following parameters:

  • rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
  • growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
  • lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
  • standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
  • trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.
Current Ratio Cash Ratio Working Capital Operating Cash Flow Ratio Operating Cash Flow Sales Ratio Short Term Coverage Ratio Defensive Interval Ratio

The Ratios module page introduces the module, and the sidebar lists all of its functions.

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