🏦 Cash Ratio Calculator
Measure a company’s most conservative liquidity metric: its ability to pay off current liabilities using only cash and cash equivalents.
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What is the cash ratio?
The cash ratio is the most conservative liquidity ratio, showing whether a company could pay off all of its current liabilities using only cash and highly liquid cash equivalents, without relying on collecting receivables or selling inventory.
The formula
Cash Ratio = Cash and Cash Equivalents / Current Liabilities. A ratio of 1.0 or higher means the company could cover all current liabilities with cash alone. Most healthy companies operate with a ratio well below 1, relying on other current assets too.
This calculator is for general financial education and analysis purposes.
Last reviewed August 2026