|
|
Cash + Marketable Securities
|
|
Cash to Current Assets =
|
|
|
|
Total Current Assets
|
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 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 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.
|