what is a good cash ratio 
the cash ratio varies between industries because some sectors rely more heavily on short term debt and financing such as those that rely on quick inventory turnover a cash ratio equal to or greater than one generally indicates that a company has enough cash and cash equivalents to entirely pay off all short term debts a ratio above one is generally favored a ratio under 0 5 is considered risky because the entity has twice as much short term debt compared to cash 