Determine your Risk Resilience Today
Research consistently shows that a low cash-to-working-capital ratio is not just a liquidity red flag; it directly correlates with reduced operational flexibility, higher financing costs, and compressed margins, especially during economic stress.
Firms that actively manage this ratio, neither hoarding nor depleting cash, tend to exhibit more stable and resilient profitability.
LIVE Liquidity & concentration simulator
Adjust parameters to see risk profile change in real time.
"Immediate action required: high dependency on single bank."
Liquidity buffer
Cash / current assetsDistribution of cash ratio across sample.
Banking concentration
Counterparty riskNumber of primary banking relationships.
Risk exposure matrix
Combined view: low cash + single bank = Danger zone (bottom-left).
The cash drag
Companies with <15% cash/current assets are 3x more likely to delay vendor payments during banking disruptions.
Diversification cost
Adding a second bank increases admin by ~12%, but reduces catastrophic access risk by 85%.
Sector variance
Tech & retail show highest "cash concentration" due to singular payment processor integrations.
LIVE Liquidity & concentration simulator
Adjust parameters to see risk profile change in real time.
"Immediate action required: high dependency on single bank."
Liquidity buffer
Cash / current assetsDistribution of cash ratio across sample.
Banking concentration
Counterparty riskNumber of primary banking relationships.
Risk exposure matrix
Combined view: low cash + single bank = Danger zone (bottom-left).
The cash drag
Companies with <15% cash/current assets are 3x more likely to delay vendor payments during banking disruptions.
Diversification cost
Adding a second bank increases admin by ~12%, but reduces catastrophic access risk by 85%.
Sector variance
Tech & retail show highest "cash concentration" due to singular payment processor integrations.