Cash ratio is yet another important Liquidity Ratio that measures how well the company is funded in meeting its Current Liabilities.

While Current Ratio includes all Current Assets, Cash Ratio is more stringent. It includes only Cash and Cash Equivalents in the numerator.

The following article covers about the topic in great extent - Cash Ratio Formula and Explanation

• Through this template, one can quickly calculate the cash ratio.
• Income Statement and balance sheet template is already present in a separate worksheet.