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Quick Ratio Screener — Acid-Test Liquidity Rankings
Mid/large-cap stocks ranked by quick ratio (acid-test), with four liquidity tiers and current ratio alongside for comparison. Filter by sector to isolate companies with strong short-term liquidity before inventory is factored in.
Understanding the Quick Ratio (Acid-Test)
The quick ratio strips liquidity analysis down to its hardest test: can this company pay every dollar of its short-term obligations using only cash, short-term investments, and receivables — with no help from inventory? The answer matters because inventory is the one current asset that can stall. In a demand slowdown, inventory sits. In a writedown, it shrinks. The quick ratio removes that uncertainty from the equation and asks what liquidity looks like in an adverse scenario.
The gap between the current ratio and quick ratio in this screener is as informative as either ratio alone. A company with a current ratio of 3.0 and a quick ratio of 0.9 is heavily inventory-dependent — if sales slow or inventory loses value, its apparent liquidity cushion disappears. Conversely, a company with nearly identical current and quick ratios holds most of its current assets in cash and receivables, making its liquidity more reliable across economic conditions.
Industry context shapes what a "normal" quick ratio looks like. Software companies and financial services firms routinely run quick ratios above 2.0 because they carry little or no physical inventory. Retailers, manufacturers, and distributors typically run lower because inventory is central to their business model. The four liquidity tiers in this screener — Very Strong, Healthy, Moderate, and Weak — are calibrated as general benchmarks; use the sector filter to compare like-to-like rather than judging a food manufacturer against a software firm on the same absolute scale.
For the broader framework on analyzing balance sheet strength and financial health, see our balance sheet analysis guide.
Quick Ratio vs. Current Ratio: When Each Matters
The current ratio is a broader measure of working capital adequacy — it tells you whether total current assets cover total current liabilities. The quick ratio is a stress test. Use the current ratio to assess overall working capital efficiency; use the quick ratio to assess crisis resilience. The best scenario is a company that scores well on both, meaning its current assets are large relative to obligations and are primarily liquid rather than inventory-heavy. A company that only passes the current ratio test warrants a closer look at inventory quality and turnover before declaring its liquidity sound.
Reading the Liquidity Tiers
The four tiers in this screener map to practical interpretations. Very Strong (≥2.0) means the company holds twice the liquid assets needed to cover current liabilities — robust but worth checking whether excess cash is earning returns or sitting idle. Healthy (1.0–2.0) is the standard passing grade: the company can cover obligations comfortably without inventory. Moderate (0.5–1.0) does not necessarily signal distress, but it means the company depends on inventory turns or short-term credit to bridge the gap — a position that requires monitoring when business conditions tighten. Weak (<0.5) warrants scrutiny: the company would need to liquidate significant inventory or draw on credit lines to meet near-term obligations.
Frequently asked questions
Why exclude inventory from the quick ratio?
Inventory is the least liquid of the current assets. It takes time to sell, and in a demand downturn or sector disruption, it may sell below carrying value or not at all. By excluding inventory, the quick ratio answers the harder question: if revenue slows or stops tomorrow, can this company meet its obligations with the cash and near-cash assets it already holds? That stress-test framing makes it especially useful when evaluating cyclical companies, retailers, or any business where inventory is subject to rapid obsolescence.
What quick ratio is too high?
An extremely high quick ratio — say, 5.0 or above — can signal that a company is sitting on excess idle cash rather than deploying it for growth or returning it to shareholders. This is not always a red flag (some industries structurally hold large cash reserves), but it is worth investigating. For most companies, a quick ratio in the 1.0–3.0 range is constructive. Very high ratios are most common in cash-generative software and financial companies; very low ratios are most common in capital-intensive retail and industrial businesses.
How does this screener get its data?
The screener fetches balance sheet and liquidity data for mid/large-cap stocks from Yahoo Finance via our API. Quick ratio and current ratio are computed from the latest quarterly balance sheet data. All data refreshes hourly. The sector filter uses Yahoo Finance's sector classifications. Stocks missing reliable balance sheet data are excluded from the results.
Should I use quick ratio or current ratio for credit analysis?
Both, in sequence. Start with the current ratio to establish overall working capital adequacy. Then run the quick ratio to understand how much of that working capital is genuinely liquid. If a company has a strong current ratio but a weak quick ratio, dig into inventory quality: what is the average days-inventory-outstanding, how quickly does it turn, and how sensitive is that turn to demand? Companies with quick ratios consistently below 1.0 that also have slowing inventory turns are at higher risk of a liquidity squeeze in a downturn.
Can a company with a low quick ratio still be financially healthy?
Yes, particularly in capital-efficient industries with predictable inventory cycles. A grocery retailer or fast-fashion company may run a quick ratio below 1.0 while maintaining strong cash flows because their inventory turns very quickly — often within days. The quick ratio is a point-in-time snapshot; cash flow generation is what sustains a business over time. Pair the quick ratio with operating cash flow margin and days-inventory-outstanding to get a full picture. A low quick ratio plus strong cash generation plus fast inventory turns is a very different risk profile from a low quick ratio plus thin margins plus slow inventory turns.
How do I find the full analysis for a stock in the screener?
Click the ticker symbol in the first column to open the Basis Report stock intelligence page for that company. You can review the full balance sheet, run a DCF valuation, check earnings quality, assess capital allocation, and generate a complete research report. The screener surfaces the short list of liquidity leaders and laggards; the full report provides the depth to understand whether the quick ratio reflects a structural strength, a business model quirk, or a real financial vulnerability.