Enter the total cash and cash equivalents along with the current liabilities into the calculator. The calculator will evaluate and display the cash ratio of the business.

## Cash Ratio Formula

The following formula can be used to calculate the cash ratio of a business.

CR = C / CL

- Where CR is the cash ratio
- C is the cash and cash equivalents
- CL is the current liabilities.

## Cash Ratio Definition

A cash ratio is a financial measure of how “liquid” or solvent a business is. In other words, how much cash a business has relative to it’s liabilities. A larger cash ratio means a company has a greater amount of cash to work with respect to it’s liabilities. This typically means the business is more profitable.

## Related Terms

cash ratio calculator |

cash ratio formula |

how to calculate cash ratio |

cash conversion cycle formula |

cash ratio interpretation |

cash conversion cycle calculator |

cash coverage ratio formula |

cash flow ratio formula |

cash conversion formula |

operating cash flow ratio formula |

formula for acid test ratio |

cash flow coverage ratio formula |

cash deposit ratio formula |

cash return on assets formula |

cash debt coverage ratio formula |

cash turnover ratio formula |

acid test ratio calculation |

cash conversion ratio formula |

how to find cash ratio |

acid test ratio equation |

cash conversion rate formula |

cash conversion cycle equation |

cash flow to debt ratio formula |

cash turnover formula |

calculate cash ratio |

cash flow to sales formula |

free cash flow ratio formula |

cash position ratio formula |

price to cash flow ratio formula |

cash ratio equation |

cash to debt ratio formula |

cash flow available for debt service formula |

cash profit margin formula |

cash available for debt service formula |

cash flow on total assets ratio formula |

cash conversion period formula |

cash flow liquidity ratio formula |

cash coverage ratio calculator |

cash flow coverage ratio formula example |

cash coverage formula |

free operating cash flow to total debt formula |

cash profit ratio formula |

cash flow to sales ratio formula |

cash debt coverage formula |

cash flow to total debt formula |

operating cash flow ratio interpretation |

free cash flow margin formula |

operating cash flow margin formula |

cash flow margin ratio formula |

how to calculate current ratio and quick ratio |

debt to cash flow ratio formula |

cash conversion cycle ratio formula |

how to calculate cash ratio from balance sheet |

cash conversion rate calculation |

liquid assets to total assets formula |

current and quick ratio formula |

cash flow per share ratio formula |

cash earning retention ratio formula |

cash to current liabilities ratio formula |

cash conversion ratio calculation |

cash conversion cycle calculator excel |

cash flow coverage formula |

acid test ratio formula example |

cash conversion cycle formula example |

receivable conversion period formula |

cash ratio and quick ratio |

calculate cash conversion |

cash ratio calculation formula |

cash profit margin ratio formula |

cash conversion cycle calculation example |

cash flow liquidity formula |

cash flow ratio calculator |

absolute cash ratio formula |

cash interest coverage ratio formula |

cash return on assets ratio formula |

how to find a quick ratio |

cash flow leverage ratio formula |

working capital operating cycle formula |

cash deposit ratio calculation |

cash conversion days formula |