Quick Ratio (Historical)
Returns the quick ratio (also known as acid-test ratio) for a company. This measures the ability to pay short-term obligations with liquid assets (excluding inventory).
Formula
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Supported Symbol Formats
| Type | Format | Example |
|---|---|---|
| US Stocks | SYMBOL | AAPL, MSFT |
Parameters
| Parameter | Required | Description |
|---|---|---|
| Symbol | Yes | Stock ticker symbol |
| Year | Yes | Fiscal year (2020, 2021, etc.) or period code (lq, ly) |
| Quarter | No | Calendar quarter 1-4 (default: 1) |
| TTM | No | Enter "TTM" for trailing twelve months |
Interpretation
| Value | Meaning |
|---|---|
| > 1.0 | Company can cover short-term liabilities with liquid assets |
| = 1.0 | Liquid assets exactly cover current liabilities |
| < 1.0 | May have difficulty meeting short-term obligations |
Examples
=hf_Quick_ratio("AAPL", 2023, 4)=hf_Quick_ratio("MSFT", 2022, , "TTM")=hf_Quick_ratio("GOOGL", "ly")When to Use
- Analyzing short-term liquidity trends
- Comparing liquidity across companies
- Assessing ability to pay short-term debts
- Credit analysis and financial health assessment
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Need current quick ratio | Quick_Ratio() |
| Need current ratio (includes inventory) | hf_Current_ratio() |
| Need cash ratio | hf_Cash_ratio() |
Common Issues & FAQ
Q: Why is quick ratio different from current ratio? A: Quick ratio excludes inventory, providing a stricter liquidity measure.
Q: What is a good quick ratio? A: Generally, > 1.0 is considered healthy, but varies by industry.
Get Access to 1 Billion Usable Market data points IN YOUR EXCEL SHEETS WITH EASY TO USE EXCEL FUNCTIONS
Get started today
▶
How does MarketXLS work?