Cash Flow Liquidity Ratio Calculator

The Cash Flow Liquidity Ratio compares Cash, Marketable Securities, and Cash Flow from Operations to the Current Liabilities of the company. This ratio measures how well a company can handle its short-term debt with its cash and other liquid assets.

If Cash Flow Liquidity Ratio increases over time:

An increasing Cash Flow Liquidity Ratio usually shows the company can increasily cover its short-term debt with its cash and other liquid assets.

If Cash Flow Liquidity Ratio decreases over time:

A decreasing Cash Flow Liquidity Ratio usually shows the company is less-able to cover its short-term debt with its cash and other liquid assets.

If Cash Flow Liquidity Ratio stays the same over time:

An unchanged Cash Flow Liquidity Ratio usually shows the ability of the company to cover its short-term debt with its cash and other liquid assets has remained the same.