What is the Cash Ratio: Meaning, Importance and Formula

As a creditor, investor, or analyst, evaluating a company’s financial health is highly important. How can you tell if the company can pay off its debts? How do you compare its liquidity and solvency with other companies? One key ratio helps answer these questions: the cash ratio. The cash ratio measures a company’s ability to pay off its short-term obligations with its most liquid assets. In this blog post, we will explore everything about what is cash ratio and cash ratio formula. If you interested know about cash ratio importance than we have explained and shared cash ratio example.