The strictest liquidity ratio: (cash + cash equivalents) ÷ current liabilities. Compute the basic ratio, compare three liquidity ratios, simulate cash changes, and read the general-guidance band interpretation — all right in your browser.
Enter figures in Rupiah (e.g. 300000000).
Three ratios from the same components — see how strict each measure is.
Drag the slider to add or reduce cash and see the impact on the ratio.
Enter a cash ratio to see its general-guidance band.
Cash ratio = (Cash + Cash Equivalents) ÷ Current Liabilities. Example: Rp300 million cash + Rp200 million cash equivalents = Rp500 million; divided by Rp1,000 million (Rp1 B) current liabilities gives 0.50.
All three are liquidity ratios with increasingly loose numerators. Cash ratio = (cash + cash equivalents) ÷ current liabilities — the strictest. Quick ratio adds receivables to the numerator. Current ratio adds inventory too. With Rp300 million cash, Rp200 million cash equivalents, Rp400 million receivables, Rp500 million inventory, and Rp1,000 million current liabilities: cash ratio 0.50, quick ratio 0.90, and current ratio 1.40.
As general guidance often used in the literature (not an official standard): above 1 means highly liquid, 0.5–1 means healthy, below 0.5 means caution. The ideal figure differs across industries because each business's operating cash needs are not the same.
Because cash is rarely the only source for settling short-term obligations — collectible receivables and salable inventory are used too. The cash ratio is deliberately strict: it measures the ability to pay current liabilities from cash and cash equivalents alone, without relying on selling other assets.
Yes. Cash equivalents are very short-term, highly liquid investments with almost no risk of value change, such as short-term time deposits and money-market securities maturing within three months. Both are summed as the cash ratio's numerator.
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