Cash Ratio Calculator

Your details

Physical currency, coins, and balances in checking or savings accounts available on demand.
Short-term government bonds (T-bills), commercial paper, and money market funds that can be liquidated within 90 days.
Any borrowings or notes payable due within the next 12 months.
Amounts owed to suppliers for goods or services already received.
Accrued expenses, deferred revenue, taxes payable and any other obligations due within one year.
Money owed by customers. Used only to compute the quick ratio for comparison - not part of the cash ratio itself.
Raw materials, work-in-progress, and finished goods. Used only to compute the current ratio for comparison.
Cash RatioModerate
0.86x

Cash and equivalents divided by total current liabilities

Total Cash & Equivalents60,000,000
Total Current Liabilities70,000,000
Quick Ratio (for comparison)1.21x
Current Ratio (for comparison)1.5x
Short-term liabilities covered0.9%
0.86 x
Very Low<0.2Low0.2-0.5Moderate0.5-1Healthy1-1.5High1.5+

Your cash ratio is 0.86x - cash covers 85.7% of current liabilities.

  • Your liquid cash and equivalents fall short of your short-term obligations by $10,000,000.
  • A cash ratio between 0.5x and 1.0x is common and often acceptable. Most lenders look for at least 0.5x as a floor.
  • For context: your quick ratio is 1.21x and current ratio is 1.50x. The gap between cash ratio and quick ratio shows how much you depend on receivables to cover short-term obligations.

Next stepMonitor the ratio each quarter alongside the quick ratio and current ratio to catch any drift early.

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