Rytvae Consulting · Think Right · Invest Right
Cash Ratio Calculator
Result
Chart
Show formula & working
Cash ratio = (Cash + Bank balances + Liquid investments) ÷ Current liabilities
Details
How this works
The cash ratio asks how much of the current liabilities could be paid today from cash in hand.
Most operating businesses run a low cash ratio and rely on collections; very low figures mean little buffer.
Frequently asked questions
Should fixed deposits under lien count?
No — deposits held as margin for guarantees or LCs are not freely available.
Is there a typical figure?
It varies too much by business; it is read alongside the current and quick ratios.
Want your ratios read the way a lender reads them?
Classification, quasi-equity and one-off items all move the ratios. Talk to Rytvae before you approach lenders.