Cash Ratio

The cash ratio is usually calculated by dividing a company's cash and cash equivalents by its current liabilities. Occasionally, people will calculate the cash ratio by dividing the sum of a company's cash and cash equivalents and its marketable securities by its current liabilities. Whichever method is used, the purpose of the cash flow ratio is measure the company's short-term liquidity. The higher the cash ratio, the higher the probability that the company will be able to satisfy its current obligations.—
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[showmehow]

Great work as always mate. You have such a clear voice, I remember watching one of your WACC videos years ago as a student, and just thinking, why on earth do they try and make it so complicated :P.

[MyFinancialFocus]

Interesting ratio. Could be good because they have liquidity, but it could mean that the business isn’t utilizing their cash efficiently.

[AliceWay-fl]

I have a question:
Quick cash ration.
What value of the
Marketable Security
Use.

[jawsxx]

Great video! You helped me with my class.