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Cash Ratio Calculator

Work out cash ratio instantly with clear inputs, formula shown and shareable results.

About Cash Ratio Calculator

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.

Formulas

Cash ratio

Cash ratio = (Cash + Marketable securities) / Current liabilities

Coverage

Coverage % = Liquid assets / Current liabilities x 100

Worked example

With the default values below, Cash Ratio Calculator returns Cash ratio of 0.625. Change any input above and every figure here is recalculated in your browser.

Inputs used

Cash and cash equivalents
320,000
Marketable securities
80,000
Current liabilities
640,000

Results

Cash ratio
0.625
Cash and near-cash assets
$400,000.00
Current liabilities covered
62.50%
Uncovered current liabilities
$240,000.00

Step by step

  1. 1Values used
  2. 2Cash ratio
  3. 3Coverage
  4. 4Cash ratio= 0.625
  5. 5Cash and near-cash assets= 400,000.00
  6. 6Current liabilities covered= 62.50
  7. 7Uncovered current liabilities= 240,000.00

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

What is a good cash ratio?

0.2 to 0.5 is typical. Above 1.0 is very safe but often signals cash sitting idle rather than being deployed.

How does it differ from the quick ratio?

The quick ratio also counts receivables. The cash ratio excludes them, because collection takes time you may not have.

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