cash ratio calculation formula: cash ratio = monetary funds ÷ current liabilities ×1%. The ratio of cash to current liabilities is called cash ratio, and its calculation formula is: cash ratio = monetary funds ÷ current liabilities ×1%. The cash ratio indicates how much cash 1 yuan current liabilities have as debt repayment guarantee. Among quick assets, the most liquid fund that can be directly used for debt repayment is cash. Unlike other quick assets, cash itself can directly repay debts.

the significance of the existence of foreign exchange

foreign exchange reserves are an important part of a country's international solvency, and have an important impact on balancing international payments and stabilizing exchange rates. Of course, it is also the embodiment of comprehensive national strength. The existence of foreign exchange reserves is of great significance, especially for countries with large export demand. Foreign exchange reserves can cope with various unexpected crises and better adapt to the impact of international economic and political fluctuations. As an international payment (purchase) means, it provides payment for the purchase of strategic materials and key technologies for national economic construction and scientific and technological development.