calculate_quick_ratio
Calculate the quick (acid-test) ratio: liquid assets excluding inventory divided by current liabilities — a stricter short-term solvency test than the current ratio. Formula: Quick Ratio = (Current Assets - Inventory) / Current Liabilities. WHEN TO USE: Use when inventory is slow-moving or hard to liquidate and you want a conservative view of short-term payment ability. WHEN NOT TO USE: Do NOT use for businesses where inventory converts to cash quickly (e.g. retailers with fast sell-through) — it understates true liquidity. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { quick_ratio: number (e.g. 1.2 = 1.2x), inputs }. PARAMETERS: current_assets (required): Total current assets, e.g. 500000. Must be >= 0. inventory (required): Inventory value to exclude, e.g. 120000. Must be >= 0 and <= current_assets. current_liabilities (required): Total current liabilities, e.g. 280000. Must be > 0.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| inventory | Yes | Inventory value to exclude, e.g. 120000. Must be >= 0 and <= current_assets. | |
| current_assets | Yes | Total current assets, e.g. 500000. Must be >= 0. | |
| current_liabilities | Yes | Total current liabilities, e.g. 280000. Must be > 0. |