Cash and equivalents ÷ current liabilities, the most conservative liquidity measure.
What this ratio is
The cash ratio (Cash Ratio): cash and equivalents ÷ current liabilities, the most conservative liquidity measure.
How to read it
The strictest measure: cash alone against near-term liabilities. 0.3× is normal for many large companies.
Common mistake
A low reading alone does not mean strain if operating cash flow is strong and steady.
Where to see it on the platform
The fundamentals comparison page shows it for each company against the market median, under the "liquidity metrics" family, with five years of history and a 12-month window.
Questions about the cash ratio
What is the cash ratio?
Cash and equivalents ÷ current liabilities, the most conservative liquidity measure.
How does the cash ratio show up on the trading platform?
It appears as "cmp:cash_ratio" (full term: Cash Ratio), which is what you see in the options chain or on the order screen.
