Current Ratio & Liquidity Ratios Calculator
The current ratio answers one question: if everything you owe in the next twelve months came due, could everything you own in the next twelve months cover it? This calculator works it out, along with the two stricter versions — the quick ratio and the cash ratio — from one set of inputs.
The three ratios differ only in how much they trust your assets. The current ratio counts everything due within a year, inventory and prepaid expenses included. The quick ratio strips out inventory and prepayments, because stock takes time to sell and prepaid rent cannot be turned back into cash. The cash ratio counts only cash and near-cash. Read together they show not just whether you are covered, but how quickly.
The sheet also calculates the defensive interval: how many days your liquid assets would cover operating costs if revenue stopped today. It is a blunter measure than any ratio, and for an owner deciding whether to take on a fixed commitment it is often the more honest one.
Each result comes with a plain-language reading rather than a verdict you have to look up. A current ratio below 1.0 means the funding gap is already there. Between 1.0 and 1.5 you are covered on paper but a single late payment can break the month. Above 3.0 you are safe, but cash is probably sitting idle instead of working. The what-if section at the bottom shows how one decision — drawing on an overdraft, collecting a large invoice, paying down debt early — moves all three ratios at once.
Ratios calculated once a quarter tell you where you stood on the day someone built the file. Finmap recalculates them from live bank and invoice data, which matters most in the weeks when the answer is changing fastest.
