Quick ratio (acid test): what it is and how to read it
Like the current ratio, but without counting inventory, which can take time to sell or be worth less than expected. That is why it is called the acid test: it measures liquidity in the worst case.
How it is calculated
Quick ratio = (current assets − inventory) / current liabilities.
How to read it
Above 1, the company can pay its short-term debts without selling any stock. For companies with little inventory (software, services) it is almost the same as the current ratio.
Quick ratio in the MeridIAn ranking
Among the 1,657 companies in the ranking with data, the median Quick ratio is 0.90: half are below and half above. The lowest 25% are below 0.62 and the highest 25% above 1.43.
For example: NVIDIA, 2.92; Apple, 0.81; Alphabet, 2.47; Inditex, 0.86.
By sector
| Sector | Median | Companies with data |
|---|---|---|
| Basic Materials | 1.10 | 139 |
| Communication Services | 0.73 | 102 |
| Consumer Cyclical | 0.71 | 227 |
| Consumer Defensive | 0.59 | 123 |
| Energy | 0.88 | 99 |
| Healthcare | 1.20 | 209 |
| Industrials | 0.94 | 386 |
| Technology | 1.28 | 281 |
| Utilities | 0.54 | 91 |
Highest Quick ratio
What to watch out for
For businesses whose inventory sells very fast, like supermarkets, a low quick ratio is normal.
Related metrics
All metrics in the glossary → · Stocks by sector and country → · Ready-made screeners →
General information for educational purposes, not investment advice. Figures from the latest weekly analysis (Oct 8, 2026) with the latest available price.