What does a Cash Ratio of 0.75 mean?

It means you have $0.75 of cash + cash equivalents for every $1.00 of current liabilities—so you could cover ~75% of near-term obligations immediately, without collecting receivables or selling inventory.

Which balance sheet line items should I include in “Cash & Cash Equivalents”?

Use the “Cash and cash equivalents” total from your balance sheet (typically cash in bank + very short-term, highly liquid equivalents). Don’t mix in inventory or accounts receivable.

What exactly counts as “Current Liabilities” for this calculator?

Use total current liabilities due within ~12 months (e.g., AP, accrued expenses, short-term debt/current portion of LTD, taxes payable, deferred revenue if classified as current).

How is Cash Ratio different from Quick Ratio or Current Ratio?

Cash Ratio uses only cash + cash equivalents (most conservative). Quick Ratio adds other near-cash items like receivables. Current Ratio includes all current assets, including inventory.

Cash Ratio Calculator (Cash ÷ Current Liabilities)

Cash Ratio Calculator

Calculate the cash ratio: (Cash + Cash Equivalents) ÷ Current Liabilities. A conservative liquidity metric that focuses only on the most liquid assets.

Cash & Cash Equivalents

Current Liabilities

Results

Cash Ratio

What is Cash Ratio?

Cash Ratio is a conservative liquidity ratio that compares cash and cash equivalents to current liabilities.

It answers one question: “If revenue pauses tomorrow, how much of near-term obligations can we cover with cash alone?”

It matters for credit risk, covenant discussions, cash runway planning, and working-capital strategy (vs. Current Ratio, Quick Ratio, Net Working Capital, and Cash Conversion Cycle).

Formula

Example

Cash & Cash Equivalents = $75,000

Current Liabilities = $100,000

Interpretation: the business holds $0.75 of cash-like liquidity for every $1.00 of short-term obligations (before collections, inventory sales, or refinancing).

How to Use the Cash Ratio Calculator

Enter your cash (and near-cash) balance and your total current liabilities, then review the cash coverage result and the interpretation panel.

Enter Cash & Cash Equivalents
- Input the total “Cash and Cash Equivalents” from your balance sheet (same reporting date as liabilities).
Enter Current Liabilities
- Input your total current liabilities (obligations due within ~12 months).
Review the Cash Ratio result
- - The calculator returns your cash coverage of short-term obligations.
formula (the formula in plain text, if is required)
Cash Ratio = (Cash + Cash Equivalents) / Current Liabilities
Use Scenarios (optional)
- Open “Scenarios” to compare different cash or liability assumptions (e.g., post-funding cash, planned debt paydown).
Share or reset
- Use “Share / Embed” to copy a shareable version, or “Reset” to clear inputs and start a new case.

Frequently Asked Questions

It means you have $0.75 of cash + cash equivalents for every $1.00 of current liabilities—so you could cover ~75% of near-term obligations immediately, without collecting receivables or selling inventory.
Use the “Cash and cash equivalents” total from your balance sheet (typically cash in bank + very short-term, highly liquid equivalents). Don’t mix in inventory or accounts receivable.
Use total current liabilities due within ~12 months (e.g., AP, accrued expenses, short-term debt/current portion of LTD, taxes payable, deferred revenue if classified as current).
Cash Ratio uses only cash + cash equivalents (most conservative). Quick Ratio adds other near-cash items like receivables. Current Ratio includes all current assets, including inventory.

Methodology & Sources

Bibliography

Haim Dov Fried (2000). Ratio Analysis – Overview (Common Size Financial Statements) — NYU Stern School of Business (New York University) https://pages.stern.nyu.edu/~hfried/download/Ratios.pdf
Accessed 2025-12-23
Accounting 441 Course Staff (n.d.). FSA Note: Summary of Financial Ratio Calculations — Duke University https://people.duke.edu/~qc2/accountg441/files/Note%20on%20Financial%20Ratio%20Formula.pdf
Accessed 2025-12-23
OpenStax (2022). 6.3 Liquidity Ratios (Principles of Finance) — OpenStax https://openstax.org/books/principles-finance/pages/6-3-liquidity-ratios
Accessed 2025-12-23

Cash Ratio Calculator

Results

What it Means?

What is Cash Ratio?

Formula

Example

How to Use the Cash Ratio Calculator

Enter Cash & Cash Equivalents

Enter Current Liabilities

Review the Cash Ratio result

Use Scenarios (optional)

Share or reset

Frequently Asked Questions

Methodology & Sources

Bibliography

Other Calculators in Corporate Finance & Analysis

Cost of Debt Calculator

Interest Rate Parity Calculator

Weighted Average Cost of Capital (WACC) Calculator

Net Operating Profit After Tax (NOPAT) Calculator

Operating Cycle (OC) Calculator

Combined Ratio Calculator