Cash Ratio Calculator

Calculate the cash ratio from cash, marketable securities, and current liabilities to evaluate short-term liquidity and solvency.

859.1K uses Updated · 2026-05-14 Runs locally · zero upload
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The Cash Ratio Calculator measures a company’s ability to cover current liabilities with only the most liquid assets — cash and marketable securities. It is a conservative liquidity ratio commonly used by lenders and credit analysts.

How to Use Cash Ratio Calculator

  1. Enter cash and cash equivalents on the balance sheet.
  2. Enter marketable securities (highly liquid short-term investments).
  3. Enter current liabilities.
  4. Read the cash ratio and its percentage form, plus calculation steps.

Formula & Theory - Cash Ratio Calculator

cash_ratio = (cash + marketable_securities) / current_liabilities
cash_ratio_pct = cash_ratio × 100%

Use Cases for Cash Ratio Calculator

  • Evaluate short-term solvency in lending or credit decisions.
  • Compare liquidity of peer companies in the same industry.
  • Track liquidity trends over multiple reporting periods.
  • Stress-test a company’s position before working-capital changes.

Frequently asked questions about Cash Ratio Calculator

What is a good cash ratio?

A ratio above 0.5 is generally considered safe, but the ideal value varies by industry. Too high may indicate idle capital.

How is it different from the current and quick ratios?

The cash ratio excludes receivables and inventory, focusing only on cash and near-cash assets, making it the most conservative liquidity measure.

Why might a low cash ratio still be acceptable?

Firms with reliable, recurring cash flows can safely operate with a low cash ratio. Context matters.

Is my data stored?

No. All calculations are performed in your browser.