Cash Ratio Calculator
Calculate the cash ratio - the most conservative liquidity measure using only cash and cash equivalents.
Cash & Equivalents
$50,000
$0$500,000
$25,000
$0$500,000
$15,000
$0$500,000
Other Assets (For Comparison)
$75,000
$0$500,000
$100,000
$0$500,000
Liabilities
$125,000
$1,000$500,000
Cash Ratio
0.72
Strong cash position
Quick Ratio
1.32
Current Ratio
2.12
Total Cash
$90,000
Cash Coverage
263 days
To cover liabilities
Liquidity Ratios Hierarchy
Cash Ratio (Most Conservative)0.72
Quick Ratio (Moderate)1.32
Current Ratio (Least Conservative)2.12
Cash Position Analysis
Cash % of Current Assets34.0%
Days of Liability Coverage263 days
Cash Ratio Benchmarks
Below 0.1Very Low
0.1 - 0.2Low
0.2 - 0.5Healthy
Above 1.0Excess Cash
Cash Ratio Formula
Cash Ratio = (Cash + Cash Equivalents) / Current Liabilities
Most Conservative Measure
The cash ratio only considers the most liquid assets. It shows if a company can pay all current liabilities immediately with cash on hand.
Industry Considerations
High cash ratios may indicate conservative management or lack of investment opportunities. Very low ratios suggest potential liquidity risk.