Work out cash ratio instantly with clear inputs, formula shown and shareable results.
The cash ratio is the strictest liquidity test: only cash and marketable securities count, with no credit given for inventory or receivables. It answers the question a lender asks in a stress scenario — could you settle short-term obligations today without selling anything or collecting anything.
Cash ratio
Cash ratio = (Cash + Marketable securities) / Current liabilities
Coverage
Coverage % = Liquid assets / Current liabilities x 100
0.2 to 0.5 is typical. Above 1.0 is very safe but often signals cash sitting idle rather than being deployed.
The quick ratio also counts receivables. The cash ratio excludes them, because collection takes time you may not have.