A company has cash of Rs.25,000, marketable securities of Rs.15,000, accounts receivable of Rs.30,000, inventory of Rs.40,000 and current liabilities of Rs.50,000. Calculate the quick ratio.

Step-by-step solution

1. Identify quick assets: cash, marketable securities and accounts receivable.
2. Add them: $25,000+15,000+30,000=70,000$ rupees.
3. Quick ratio = Quick assets ÷ Current liabilities = $70,000÷50,000$.
4. Perform the division: $70,000÷50,000=1.4$.
5. Hence, the quick ratio equals $1.4$.

Concept tested: Quick ratio (liquidity)

Published 26 September 2026 · How this solution was prepared and checked