Cash Ratio

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Cash ratio, abbreviated as CR, is used to measure the liquidity of a company.

 

Cash Ratio Formula

\(\large{ CR =  \frac{ C }{ CL }   }\)  

Where:

\(\large{ CR }\) = cash ratio

\(\large{ C }\) = cash & cash equivalents

\(\large{ CL }\) = current liabilities

 

Tags: Equations for Manufacturing