Cash Equivalent to Market Cap

Cash Equivalent to Market Cap is the ratio of a company's highly liquid assets to the market cap.

A high ratio might mean that the company is financially stable but it could also mean that the company is not investing at the most efficient rate. It is good to compare a company's ratio with other companies' and to also look at the ratio of cash to market cap.

Formula

Cash Equivalent to Market Cap = Cash Equivalent / Market Cap