Below is a *cash ratio calculator*. Enter a company's cash and cash equivalents current liabilities to compute the cash ratio.

## Cash Ratio Calculator

**Table of Contents**show ▼

## What is a company's cash ratio?

A company's cash ratio is one of the most aggressive liquidity ratios, and measures a company's ability to meet short term liability needs using *only* cash and cash equivalents. While other ratios like the quick ratio allow for selling of marketable securities and receiving owed payments, the cash ratio only allows immediately accessible cash.

A ratio of 1 or greater means the company can meet its short term needs with its cash. A ratio less than 1, however, doesn't mean the company is illiquid necessarily – compare it to some of the other liquidity ratios in the links below to double check.

## Cash Ratio Formula

The quick ratio formula is:

cash\ ratio=\frac{cash\ \&\ cash\ equivalents}{current\ liabilities}

*Where:*

**Cash and Cash Equivalents**– short-term assets which are as good as cash, or other names for cash (like "petty cash")**Current Liabilities**– short-term liabilities listed on the balance sheet

## Other Liquidity Calculators

Liquidity ratios show how easily a company can meet its near term debts. See other tools: