Calculations Less Than 1 You will find extra present liabilities than cash and cash equivalents when a business's cash ratio is less than one. Inadequate cash is available to pay back small-term debt.
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What Cash Ratio Can Show you The cash ratio is mostly employed to be a measure of a business's liquidity. This metric shows the corporate's power to shell out all current liabilities straight away without having to offer or liquidate other belongings.
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