calculate_cash_ratio
Calculate the cash ratio: cash and marketable securities divided by current liabilities — the most conservative liquidity measure. Formula: Cash Ratio = (Cash + Marketable Securities) / Current Liabilities. WHEN TO USE: Use for the strictest view of liquidity, or when a company is in distress and only cash-like assets can be relied on. WHEN NOT TO USE: Do NOT use in isolation for healthy operating businesses — it ignores receivables and inventory that normally convert to cash. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { cash_ratio: number (e.g. 0.5 = 0.5x), inputs }. PARAMETERS: cash_and_equivalents (required): Cash and cash equivalents, e.g. 80000. Must be >= 0. marketable_securities (required): Short-term marketable securities, e.g. 30000. Must be >= 0. current_liabilities (required): Total current liabilities, e.g. 220000. Must be > 0.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| current_liabilities | Yes | Total current liabilities, e.g. 220000. Must be > 0. | |
| cash_and_equivalents | Yes | Cash and cash equivalents, e.g. 80000. Must be >= 0. | |
| marketable_securities | Yes | Short-term marketable securities, e.g. 30000. Must be >= 0. |