Ratios & Quality

Cash Ratio

Expresses immediate available liquidity as a percentage of another economic base. This allows intensity, efficiency or coverage to be compared without company size dominating the reading.

Browse this section Versión en español

Cash Ratio

cashRatio · Ratios & Quality

Link

Definition: Expresses immediate available liquidity as a percentage of another economic base. This allows intensity, efficiency or coverage to be compared without company size dominating the reading.
Calculation: Cash and equivalents / current liabilities.
Uses: Useful for comparing similar models and tracking efficiency, pricing power, financial risk or taxation. It can mislead across sectors or with one-offs, restructuring or accounting-policy changes. Complement with growth, FCF, ROIC, asset turnover and notes.