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Cash Ratio Calculator



Cash Flow to Debit Ratio


Defination / Uses

The cash rate is one of the most noted liquidity rates as it measures a company's capability to repay its debts and debt using its cash or analogous liquid means.

The cash rate is popular amongst creditors and is widely used in credit analysis as it measures a company's liquidity grounded on its most liquid means-cash and cash coordinates. This is different from other liquidity rates which take into account other lower liquid means. For case, the current rate takes into account current means which include account receivables. Unlike cash and cash coordinates, a company can not pay down its debt incontinently with account receivables.