Cash to Current Assets

Quick Definition

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

ResumeWriters.com

Cash to Current Assets Formula

Image of a Cash to Current Assets calculator
Calculate Cash to Current Assets with our online Cash to Current Assets Calculator.

Explanation of Cash to 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.

Importance of Cash to Current Assets

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.

Need a Business Loan?  Borrow up to $25,000. Fixed Rates. Use for Any Purpose. Instant Application.
Loading