Liquidity Ratios – Excel Model

Antoniya Baltova
Antoniya Baltova

Liquidity ratios measure the ability of a firm to convert its assets into cash quickly. By its nature, liquidity addresses the short term, but it is not a trivial matter.

Using a firm’s Balance Sheet and Income Statement, one could easily calculate its liquidity metrics. This is a free Excel model displaying how to calculate the following liquidity ratios:

  • Current ratio
  • Quick ratio
  • Cash ratio
  • Defensive interval

In a way, liquidity multiples help you understand the relationship between a firm’s current assets and current liabilities.

Some other related topics you might be interested to explore are Ratio analysis, Company valuation, and Forecasting.

This is an open-access Excel model in XLSX format that will be useful for anyone who wants to work as an Accountant, Financial Analyst, Finance Manager, or Investor.

You can now download the Excel template for free.

Liquidity ratios are included in the Financial Reporting module of the CFA Level 1 Curriculum.