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Cash Ratio calculator

Cash Ratio is an indicator of company's short-term liquidity. It measures the ability to use its cash and cash equivalents to pay its current liabilities. Cash Ratio formula is:

Cash Ratio formula

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Input   Result
Cash   Cash Ratio: 0.00
Current Liabilities  
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Interpretation of Cash Ratio

Cash ratio measures the immediate amount of cash available to satisfy short-term liabilities. A cash ratio of 0.5:1 or higher is preferred.
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Definitions and terms used in the Cash Ratio calculator

  • Cash: refers to money in the physical form of currency. Cash includes money in the cash pan, petty cash, cash in the locker, bank account and customers' checks.
  • Current liabilities (short term debt): obligations or debts that are due within one fiscal year or the operating cycle. For example, accounts payable, accrued liabilities, dividends, unpaid taxes and other debts that are due within one year.

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3. Although C. C. D. Consultants Inc.'s personnel has verified and validated the Cash Ratio calculator, C. C. D. Consultants Inc. is not responsible for any outcome derived from its use. The use of Cash Ratio calculator is the sole responsibility of the user and the outcome is not meant to be used for legal, tax, or investment advice.