## Cash Ratio

Here C=Cash ,M=Marketable securities,L=Current liability.

## $$\frac{C+M}{L}$$

The ratio of a company's total cash and cash equivalents to its current liabilities. The cash ratio is most commonly used as a measure of company liquidity. It can therefore determine if, and how quickly, the company can repay its short-term debt. A strong cash ratio is useful to creditors when deciding how much debt, if any, they would be willing to extend to the asking party

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