Cash Ratio Calculator
About Cash Ratio Calculator
The Cash Ratio Calculator is used to calculate the cash ratio.
Cash Ratio Definition
In business, the cash ratio is the ratio of a company’s total cash and marketable securities to its current liabilities. It measures the ability to use its cash and marketable securities to pay its current liabilities. The cash ratio is the most conservative liquidity ratio.
Formula
The cash ratio calculation formula is as follows:
Cash Ratio = (Cash + Marketable securities) / Current liabilities
