Assess your business's short-term financial health
• Current Ratio: Measures ability to pay short-term debts with current assets
• Quick Ratio: More conservative measure excluding inventory
• Higher ratios indicate better liquidity and financial stability
Current Ratio = Total Current Assets ÷ Total Current Liabilities
Quick Ratio = (Current Assets - Inventory) ÷ Current Liabilities
Quick Assets = Cash + Receivables + Other Current Assets