ClarityHow to use this tool
- Enter cash and equivalents, short-term investments, current liabilities.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
Input reference and sample values
Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.
| Input | Format and units | Sample |
|---|---|---|
| Cash and equivalents | Numeric value. Unit: money. Zero or positive. | 20000 |
| Short-term investments | Numeric value. Unit: money. Zero or positive. | 5000 |
| Current liabilities | Numeric value. Unit: money. Must be greater than zero. | 25000 |
Result for these sample inputs
1 ×
Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.
The method, explained
Cash ratio = (cash + short-term investments)/current liabilities.
Using cash and equivalents = 20000 money, short-term investments = 5000 money, current liabilities = 25000 money, the result is 1 ×. Change these example inputs to match your task; use the method above to check each step.
What to keep in mind
Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.
Methodology maintained by ClarityKit. How these tools are built and checked.