Cash to Current Liabilities


This is a financial metric which exposes whether the firm would be able to satisfy it’s current short-term debts based upon its Cash reserves. A result of £1 or higher is desired  – a lower result indicates that the firm lacks the necessary funds and will need to increase it’s Cash at Bank in order to service its debts.

Making the KPI

Step One

You can calculate Cash to Current Liabilities using:

  1. Cash at Bank
  2. Current Liabilities

Step Two

Cash to Current Liabilities can be calculated by dividing Cash by Current Liabilities:

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Step Three

Once your formula is complete you can save it to your Formula Library and use it again with any client.

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