the cash ratio

the cash ratio

Calculate the cash ratio, which is equal to the sum of the cash and marketable securities components of current assets divided by the current liabilities. This is a stringent liquidity ratio because it considers only cash assets to determine a company’s ability to pay its debts.
Besides such ratios ,u can also calculateActivity ratios – “payable turnover ratio”which is cost of goods sold (COGS) divided by average accounts payable .

the cash ratio