The Cash Ratio Calculator is an essential tool for businesses to evaluate their short-term liquidity position. By comparing a company’s cash and marketable securities to its current liabilities, this calculator provides a quick assessment of a firm’s ability to meet immediate financial obligations. Users can instantly determine their cash ratio, gaining valuable insights into their company’s financial health. This tool is particularly useful for financial analysts, business owners, and investors who need to make informed decisions about a company’s short-term financial stability. With our Cash Ratio Calculator, you can easily interpret results and understand how well-positioned your company is to handle short-term debts. Start using this powerful financial tool today to enhance your liquidity analysis and improve your financial decision-making process.
Use the calculator by entering cash, marketable securities, and current liabilities; the tool returns your cash ratio—(cash + securities)/liabilities. A cash ratio of 1.0 signals that every short-term dollar owed is backed by a dollar in hand. The median cash ratio for S&P 500 non-financial firms is roughly 0.40 (Morningstar, 2023).
