Financial ratio tool
Cash Ratio Calculator
Calculate cash ratio using cash and cash equivalents and short-term liabilities to estimate cash-based debt coverage.
Calculator
Cash ratio calculator
Enter cash and cash equivalents and short-term liabilities to calculate cash ratio.
Results provide a general financial interpretation. Receivable collection, debt maturity and cash conversion cycle should also be considered.
Cash ratio formula
- Cash ratio
- Cash and cash equivalents / short-term liabilities
- Cash surplus or deficit
- Cash and cash equivalents - short-term liabilities
Example cash ratio calculation
If a company has 300,000 TRY in cash and cash equivalents and 500,000 TRY in short-term liabilities, the cash ratio is 0.60. Cash deficit is 200,000 TRY.
Frequently asked questions
What is cash ratio?
Cash ratio is a liquidity ratio calculated by dividing cash and cash equivalents by short-term liabilities.
What is a good cash ratio?
A higher cash ratio may indicate stronger cash-based short-term debt coverage, but the ideal level may vary by sector.
What is the difference between cash ratio and current ratio?
Current ratio includes all current assets. Cash ratio only measures short-term debt coverage using cash and cash equivalents.