Cash Ratio Template

Over 1.8 million professionals use CFI to learn accounting, financial analysis, modeling and more. Start with a free account to explore 20+ always-free courses and hundreds of finance templates and cheat sheets. Start Free

Cash Ratio Template

This Cash Ratio Template will show you how to calculate the cash ratio which measures a company’s ability to pay off short-term debt obligations with cash and cash equivalents.

Here is a preview of the template:

Cash Ratio Template Screenshot

Download the Free Template

Enter your name and email in the form below and download the free template now!

What is Cash Ratio?

The cash ratio, sometimes referred to as the cash asset ratio, is a liquidity ratio that measures a company’s ability to pay off short-term debt obligations with cash and cash equivalents. Compared to other liquidity ratios such as the current ratio and quick ratio, the cash ratio is a stricter, more conservative measure because only cash and cash equivalents  – a company’s most liquid assets – are used in the calculation.

The cash ratio indicates to creditors, analysts, and investors the percentage of a company’s current liabilities that cash and cash equivalents will cover. A ratio above 1 means that the company will be able to pay off its current liabilities with cash and cash equivalents.

Creditors prefer a high cash ratio as it indicates that the company can easily pay off its debt. Although there is no ideal figure, a ratio of not lower than 0.5 to 1 is usually preferred. The cash ratio figure provides the most conservative insight into a company’s liquidity since only cash and cash equivalents are taken into consideration.

More Free Templates

For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation and Word document templates.

Analyst Certification FMVA® Program

Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.


Financial Analyst certification curriculum


A well rounded financial analyst possesses all of the above skills!


Additional Questions & Answers

CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.

In order to become a great financial analyst, here are some more questions and answers for you to discover:


0 search results for ‘