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- What Is a Good Cash Asset Ratio? An ideal cash asset ratio would be 1. It indicates a company is able to pay off its short-term obligations with its most liquid assets but also does not have too much cash sitting around that is not being put to use.
www.investopedia.com/terms/c/cash-asset-ratio.aspCash Asset Ratio: What it is, How it's Calculated - Investopedia
Aug 17, 2021 · The cash asset ratio is a financial ratio that seeks to determine a company's liquidity by assessing its ability to pay off its short-term obligations with...
- Will Kenton
Jun 13, 2024 · The cash ratio is a liquidity measure that shows a company's ability to cover its short-term obligations using only cash and cash equivalents. The cash...
- Will Kenton
May 8, 2019 · The cash asset ratio (also called the cash ratio) is significant because it gives investors a look at a company’s ability to pay their short-term (less than a year) obligations. Because it only takes into account cash and cash equivalents as assets it is considered a worst-case scenario ratio.
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The cash ratio, or cash asset ratio, is a liquidity metric that indicates a company’s capacity to pay off short-term debt obligations with its cash and cash equivalents.
May 21, 2024 · It determines a company’s ability to pay its short-term obligations using cash and near-cash assets. A good cash ratio is when the calculation is equal to or greater than 1 and reflects a strong liquidity position of a company.
Jun 1, 2024 · Table of Content. 1. What are asset ratios and why are they important for financial analysis? 2. Current ratio, quick ratio, cash ratio, and asset turnover ratio. 3. Formulas, examples, and tips for each type of ratio. 4. Benchmarks, industry standards, and trends for each type of ratio. 5.
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Sep 30, 2024 · The cash ratio is a financial metric that evaluates a company’s liquidity by measuring its ability to pay off short-term liabilities with its most liquid assets.