Cash Ratio Calculator

The Cash Ratio is the most rigid liquidity ratio used to measure a company''''s ability to cover liabilities in the short term.

If Cash Ratio increases over time:

An increasing Cash Ratio is generally a positive sign, showing the company is more able to cover its obligations to creditors.

If Cash Ratio decreases over time:

A decreasing Cash Ratio is generally a negative sign, showing the company is less able to cover its obligations to creditors.

If Cash Ratio stays the same over time:

An unchanged Cash Ratio indicates the company''s ability to cover its obligations to creditors has remained the same.