Cash Ratio Calculator
Estimate immediate liquidity from balance-sheet amounts. Choose whether to include short-term marketable securities; all amounts must use the same currency, unit and reporting date.
Your liquidity result
- Included liquid assets
- Cash ratio
- Coverage of current liabilities
- Prior-period ratio
- Change vs. prior period
- Liquid assets needed for target
- Gap to target (negative means above target)
This is a balance-sheet ratio, not a cash-flow forecast or a guarantee that assets can be used immediately.
Cash ratio formula
Cash ratio = qualifying cash assets ÷ current liabilities. The strict definition uses cash and cash equivalents. Some financial-analysis conventions also include short-term marketable securities; choose the definition that matches your reporting policy and compare like with like.
Example: US$50,000 cash plus US$25,000 short-term investments, divided by US$100,000 current liabilities, gives 0.75×, or 75%, when investments are included. Under the cash-only definition, the result is 0.50×, or 50%.
How to interpret the result
A ratio of 0.75× means the selected liquid assets equal 75 cents for each dollar of current liabilities at the balance-sheet date. A value below 1.00× does not by itself mean insolvency: operating cash flows, receivable collection, credit access, liability timing and industry norms matter. A very high ratio can also reflect cash that could otherwise be invested productively.
Limits and assumptions
- Use amounts from the same entity, balance-sheet date, currency and scale; currency selection formats values and does not exchange them.
- Restricted cash, overdrafts, pledged balances and securities that cannot be liquidated promptly may not qualify as available cash assets.
- Enter current liabilities as a positive balance-sheet amount. Zero liabilities make the ratio undefined.
- The optional prior-period comparison requires all three prior amounts. The target shows the liquid-asset amount required at the current liability balance; it is a scenario, not a forecast or recommended covenant.
Related calculators
- Working Capital Calculator — net working capital and current ratio.
- Quick Ratio Calculator — cash, investments and receivables relative to current liabilities.
- Cash Conversion Cycle Calculator — operating timing across inventory, receivables and payables.