Cash Ratio

Cash Ratio Calculator

Measures a company’s ability to pay short-term obligations with cash and cash equivalents

?Includes actual cash, bank deposits, and short-term investments
?Short-term investments that can be quickly converted to cash
?Debts and obligations due within one year

Liquidity Analysis

0.00
(Cash + Marketable Securities) / Current Liabilities
Risk Zone Conservative Excessive

Interpretation:

The cash ratio measures immediate liquidity using only the most liquid assets.

Industry Benchmarks:

  • Below 0.5: Potential liquidity risk
  • 0.5-1.0: Typical healthy range
  • Above 1.0: Very conservative position