How do you calculate the cash ratio?
The cash ratio measures the cash and cash equivalents of a company. It is regarded as the most conservative liquidity ratio as it measures only cash and cash equivalents. All other current assets are excluded from this formula.

Back To All Questions
You might also be interested in...
-
How do you calculate the current ratio?
The current ratio indicates the number of times current assets will exceed current liabilities to measure short-term solvency. This is a ratio that will help determine whether a firm has the ability to meet its short-term obligations.
How do you calculate the current ratio?
The current ratio indicates the number of times current assets will exceed current liabilities to measure short-term solvency. This is a ratio that will help determine whether a firm has the ability to meet its short-term obligations.