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.

Cash (A):
Marketable securities (B):
Current liabilities (C):

Current liabilities (C) must be diferent from 0 !