Enter Financial Data
Use the same currency and unit scale across every amount for accurate results.
Formula Used
This calculator treats cash holdings as cash, cash equivalents, marketable securities, and optionally restricted cash.
| Metric | Formula |
|---|---|
| Cash Holdings | Cash + Cash Equivalents + Marketable Securities + Included Restricted Cash |
| Cash Holdings Ratio | Cash Holdings ÷ Total Assets |
| Cash to Current Liabilities | Cash Holdings ÷ Current Liabilities |
| Cash to Revenue | Cash Holdings ÷ Revenue |
| Gap vs Target | Current Ratio % − Target Ratio % |
| Prior Change | Current Ratio % − Prior Ratio % |
How to Use This Calculator
- Enter current cash, cash equivalents, marketable securities, and optional restricted cash.
- Add total assets so the main cash holdings ratio can be computed correctly.
- Optionally include current liabilities and revenue for wider liquidity context.
- Set a target ratio and benchmark ratio to assess surplus, shortfall, and performance.
- Enter prior-period balances if you want period-over-period trend analysis.
- Choose your currency symbol and decimal precision, then click Calculate Ratio.
- Review the result cards, summary table, and Plotly chart above the form.
- Use the CSV or PDF buttons to download a clean copy of your results.
Example Data Table
This sample shows how a company’s inputs translate into a cash holdings ratio.
| Case | Cash | Cash Equivalents | Marketable Securities | Total Assets | Cash Holdings | Ratio % |
|---|---|---|---|---|---|---|
| Sample Company A | $250,000 | $75,000 | $50,000 | $1,250,000 | $375,000 | 30.00% |
| Sample Company B | $120,000 | $30,000 | $20,000 | $950,000 | $170,000 | 17.89% |
| Sample Company C | $420,000 | $60,000 | $40,000 | $2,100,000 | $520,000 | 24.76% |
Frequently Asked Questions
1. What does the cash holdings ratio show?
It shows what portion of total assets is held in cash-like resources. Higher values generally indicate stronger liquidity, flexibility, and short-term resilience, though very high levels may also suggest underused capital.
2. Why include marketable securities?
Marketable securities are often highly liquid and can usually be converted into cash quickly. Including them gives a broader view of near-cash resources available for operations, debt service, or opportunity funding.
3. Should restricted cash be counted?
It depends on your policy and reporting goal. If restricted balances cannot support general operations, excluding them may provide a stricter liquidity picture. This calculator lets you choose either treatment.
4. What is a good cash holdings ratio?
There is no single universal threshold. A good ratio depends on industry volatility, debt structure, seasonality, capital intensity, and management strategy. Compare results against your target, peer benchmark, and historical trend.
5. How is this different from the current ratio?
The current ratio compares all current assets to current liabilities. The cash holdings ratio is narrower because it focuses on the most liquid balances relative to total assets, giving a cash concentration view.
6. Why enter prior-period values?
Prior-period values show whether liquidity is improving or weakening over time. Trend analysis helps decision-makers see if the current position reflects sustainable progress or a short-term spike.
7. Can this help with internal liquidity policies?
Yes. You can compare the calculated ratio with your internal target and estimate the surplus or shortfall in monetary terms. That helps support treasury planning and working capital discussions.
8. Which units should I use?
Use one consistent unit across every amount, such as dollars, thousands, or millions. Mixing units will distort the ratio and all supporting outputs, including target and trend calculations.