Cash Ratio Calculator
Cash Ratio = ((A) Cash + (B) Marketable securities) / (C) Current Liabilities
Creditors use this ratio as measure of a company’s liquidity.
If the Cash ratio in under 1 it mean, the company have not enough cash on hand to pay off current liabilities,
Cash ratio is also known as CAR.
Current liabilities (C) must be diferent from 0 !