Total dollar value of cash and marketable securities divided by current liabilities. For a bank this is the cash held by the bank as a proportion of deposits in the bank. The liquidity ratio measures the extent to which a corporation or other entity can quickly liquidate assets and cover short-term liabilities, and therefore is of interest to short-term creditors. also called cash asset ratio or cash ratio.
Related information about liquidity ratio:
- Liquidity ratio - Wikipedia, the free encyclopedia
Liquidity Ratio may refer to: Reserve requirement, a bank regulation that sets the minimum reserves each bank must hold. Acid Test (Liquidity Ratio), a ratio ...
- Liquidity Ratios Definition | Investopedia
A class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the ...
- Liquidity Ratio Definition - What is Liquidity Ratio?
What is Liquidity Ratio? Find out right now with a helpful definition and links related to Liquidity Ratio.
- Liquidity Ratios
The cash ratio is the most conservative liquidity ratio of all. It only measures the ability of a firm's cash, along with investments that are easily converted into cash, ...
- Financial Ratios
Finally, the cash ratio is the most conservative liquidity ratio. It excludes all current assets except the most liquid: cash and cash equivalents. The cash ratio is ...
- What is liquidity ratio? definition and meaning
Definition of liquidity ratio: Total dollar value of cash and marketable securities divided by current liabilities. For a bank this is the cash held by the bank as a ...
- liquidity ratio - The Free Dictionary
(Economics, Accounting & Finance / Banking & Finance) the ratio of those assets that can easily be exchanged for money to the total assets of a bank or other ...
- Liquidity Ratios - Financial Dictionary - The Free Dictionary
As a result, potential creditors use this ratio in determining whether or not to make short-term loans. It is also called the liquidity ratio and the current ratio.