Tool Slick

Cash Ratio Calculator

Cash Ratio Calculator is tool that finds out the ability to use cash and the cash equivalents. To pay its current liabilities, it is an indicator of company's short-term liquidity

All processing happens on the client-side, locally in your browser. No data is uploaded.

Cash amount
Marketable securities amount
Current liabilities amount
Cash Ratio
9.17

History

  • 2018-06-10Tool Launched

Background

What does Cash Ratio mean?
Cash ratio is the ratio of cash and cash equivalents of a company to its current liabilities. It measures the ability of a business to repay current liabilities by only using the cash and cash equivalents.
Formula
Cash Ratio = Cash + Cash Equivalents/Current Liabilities
Example

A company called ‘ZIMA’ has following assets and liabilities at the year ended December 31, 2017:-

Cash $34,390
Marketable Securities 12,000
Accounts receivable $17,874
Accounts Receivable 56,200
Prepaid Insurance 9,000
Total Current Liabilities 73,780

According to the formula, Cash Ratio is:-

  • = (34,390 + 12,000) / 73,780
  • = 46,390 / 73,780
  • = 0.63