## About Cash Ratio Calculator

The Cash Ratio Calculator is used to calculate the cash ratio.

## Cash Ratio Definition

In business, the cash ratio is the ratio of a company’s total cash and marketable securities to its current liabilities. It measures the ability to use its cash and marketable securities to pay its current liabilities. The cash ratio is the most conservative liquidity ratio.

## Formula

The cash ratio calculation formula is as follows:

Cash Ratio = (Cash + Marketable securities) / Current liabilities

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