The Absolute Liquid Ratio Calculator is a financial analysis tool that computes the cash ratio, which is the most stringent measure of a company's liquidity position. This calculator determines the relationship between a company's absolute liquid assets (cash and cash equivalents) and its current liabilities, providing insight into the immediate ability to pay off short-term obligations without relying on the sale of inventory or collection of receivables.
The tool offers three calculation modes: calculating the absolute liquid ratio from available assets and liabilities, determining the required absolute liquid assets needed to achieve a target ratio, and computing the maximum current liabilities sustainable at a given ratio with available cash. This calculator is essential for financial managers, investors, creditors, and analysts who need to assess a company's immediate financial health, creditworthiness, and short-term risk exposure. The results help in making informed decisions about working capital management, credit extension, and investment evaluation.
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