Liquidity ratios


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Related to Liquidity ratios: current ratio, Leverage ratios, Profitability ratios, Efficiency Ratios, Solvency Ratios

Liquidity ratios

Ratios that measure a firm's ability to meet its short-term financial obligations on time, such as the ratio of current assets to current liabilities.

Cash Asset Ratio

A ratio of a company's cash and liquid assets to its total liabilities. A cash asset ratio measures a company's liquidity and how easily it can service debt and cover short-term liabilities if the need arises. 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.

Cash Ratio

1. A ratio of a company's cash and liquid assets to its total liabilities. A cash ratio is a measure of company's liquidity and how easily it can service debt and cover short-term liabilities if the need arises. 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 cash asset ratio.

2. In banking, a ratio of a bank's cash and cash equivalents to its demand deposits. See also: Reserve requirement.
References in periodicals archive ?
There are upward pressures on the FSR, but an increase in the rating would require liquidity ratios to strengthen further.
The new Basel Accord has stricter requirement for liquidity ratio, in the hope that financial institutions have sufficient liquidity to cope with emergent market situation, thereby boosting the stability of the financial system.
Local-currency deposits: Liquidity ratios will continue to be lowered and the differences in the ratios between indexed and unindexed deposits will gradually disappear.
While the banking sector in Turkey generally posts extremely tight loan-based liquidity ratios and liquid asset ratios, KTKB's ratios are not only far better than the average, they are among the best in the sector - and in most cases are sound in a global context.
UAB's key liquidity ratios continue to be tighter than the peer group average, although there were improvements at end 2013, owing to strong growth in customer deposits, increased capital and a small amount of medium-term funds raised last year.
Over the past three years, external solvency and liquidity ratios have also improved due to both robust CXR growth and increases in international reserves.
The Stable Outlook reflects Fitch's expectation that Pine will maintain its capitalization and liquidity ratios as well as the maintenance of the higher coverage levels evident in recent results over the medium term.
Various types of ratios including Liquidity Ratios, Solvency Ratios, Structure
The sovereign upgrade reflects significant improvements in external debt and liquidity ratios because of windfall oil export receipts, leaving them significantly better than peer 'BB' levels.
Lower prices assumed in Fitch's base case for 2007 will bring external liquidity ratios for the following year closer in line with 'BB' peers, but even in the event of a significantly larger price decline, liquidity would still be expected to remain near the peer median, and net public external debt would hold well below peers for the next two years.
BDP ratings reflect its stable asset quality and adequate liquidity ratios.
Cash generation has improved liquidity ratios with days cash on hand growing to 188.