Cash to Current Assets

Determines how liquid a company is by comparing its readily available cash to its current assets.

The Cash to Current Assets ratio measures a company's liquidity, basing how liquid a company is by its Cash and Cash Equivalents and Marketable Securities alone.

A high, or increasing Cash to Current Assets ratio is generally a positive sign, showing the company's most liquid assets represent a larger portion of its Total Current Assets. It also indicates the company may be better able to convert its non-liquid assets, such as inventory, into cash.

Tags: Financial Ratio