the Cash ratio is a Key figure A measure of a company's liquidity. It indicates the extent to which a company is in a position to settle its short-term debts exclusively with liquid funds. A high cash ratio indicates a solid Liquidity while a low value may indicate possible liquidity problems.
Differentiation between the calculation methods
There are two common approaches to calculating the cash ratio:
- Cash ratio (by profit)
- Significance: Measures the net cash flow from operating activities in relation to net profit.
- Cash ratio (by revenue)
- Significance: Represents the net cash flow from operating activities in relation to the net sales generated.
Use in SAP Business One
The cash ratio is a predefined key performance indicator (KPI) in SAP Business One
- Available countries: China, Germany, Great Britain, USA.
- Calculation basis: "Calculation View KPI Balance Sheet Query".
- The key figure is calculated on a daily basis in the context of the current month and provides real-time insights into the financial situation of a company
Versino Financial Suite
the Versino Financial Suite makes monitoring and analysing the cash ratio in SAP Business One much more convenient, transparent and meaningful. It offers real-time transparency, drill-down options, automated checks and flexible reports - a clear added value for liquidity management in the company.
Verifactu in Spain: the new invoicing obligation
Spanish companies are facing a turning point in their digital accounting. Royal Decree 1007/2023 and Regulation HAC/1177/2024 oblige almost all companies to ...
The e-invoicing regulations in Europe
Electronic invoicing is no longer a topic for the future, but is becoming a legal requirement in many European countries. Driven by initiatives such as ...
Versino Financial Suite V09.2025 for SAP Business One
Since the introduction of the Financial Cockpit at the start of 2025, it has been clear that the strategic focus of the Versino Financial Suite is shifting ...
Accounting outsourcing: Why it pays off for SMEs
Medium-sized companies are under increasing pressure to work efficiently, comply with regulatory requirements and remain competitive at the same time. In this constellation ...
CANDIS for SAP Business One
Intelligent document recognition: when AI wins the paper warThose who work in the accounting department of a medium-sized company today are familiar with the challenge: the incoming mail ...
Convert SAP Business One to camt.053 now
From 1 November 2025, the widely used MT940 format for electronic bank statements will no longer be supported. Companies that use SAP solutions such as ...
