Liquidity Calculators

Below you will find descriptions and links to 8 free calculators for computing values associated with a company's liquidity.

If you like, you may also use the search page to help you find what you need.

Accounts Receivable by Sales Calculator

This calculator will compute a company's accounts receivable by sales ratio, given the company's accounts receivable balance and the amount of sales.

The accounts receivable by sales ratio can be monitored over time to evaluate changing sales patterns or to assess the effectiveness of accounts receivable management.

Accounts Receivable by Total Assets Calculator

This calculator will compute a company's accounts receivable by total assets ratio, given the company's accounts receivable balance and total assets.

The accounts receivable by total assets ratio can be monitored over time to evaluate marketing strategies or to assess customers' ability to pay.

Accounts Receivable Turnover Calculator

This calculator will compute a company's accounts receivable turnover rate, given the company's annual credit sales and average accounts receivable balance.

Larger values of the accounts receivable turnover rate indicate that the company collects money from its customers quickly, while smaller values indicate that the company collects money owed by its customers slowly.

Acid-Test (Quick) Ratio Calculator

This calculator will compute a company's acid-test ratio (also called the Quick Ratio), given the company's accounts receivable balance, cash on hand, current liabilities, and market security holdings.

The acid-test (quick) ratio is a stringent test of a company's liquidity. Smaller values of the quick ratio indicate that a company may have difficulty meeting its debt obligations, and by extension may not be a good candidate for short-term credit.

Average Collection Period Calculator

This calculator will compute a company's average collection period (in days), given the company's accounts receivable turnover rate.

The average collection period is a measure of the average number of days that a company takes to collect on its accounts receivable. Smaller values of this measure indicate that a company collects money from its customers quickly.

Cash and Cash Equivalents to Working Capital Calculator

This calculator will compute a company's cash and cash equivalents to working capital ratio, given the company's cash on hand, maturing marketable securities, and amount of working capital.

A company's cash and cash equivalents are its most liquid assets. Comparatively large values of the cash and cash equivalents to working capital ratio indicate that a company is well-positioned to service its short-term debt.

Sales to Cash Calculator

This calculator will compute a company's sales to cash turnover ratio, given the company's cash on hand and its total sales.

High values of the sales to cash ratio may indicate that a company is facing a liquidity crisis, while low values may indicate that a company is not using its available cash productively.

Sales to Working Capital Calculator

This calculator will compute a company's sales to working capital turnover ratio, given the company's total sales and its amount of working capital.

Comparatively small values of the sales to working capital ratio may indicate that a company is not producing sales efficiently in light of its level of operating liquidity.