basic

Cash Ratio Calculator

Cash ratio = (cash + marketable securities) / current liabilities.

Compute the cash ratio — the most stringent liquidity measure: cash & marketable securities ÷ current liabilities. > 1 means a firm could cover all short-term obligations from cash on hand.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

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Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

Cash ratio = (cash + marketable sec) / current liabilities

In depth

Compute the cash ratio — the most stringent liquidity measure: cash & marketable securities ÷ current liabilities. > 1 means a firm could cover all short-term obligations from cash on hand.