Cash asset ratio

(redirected from Working Capital Ratios)

Cash asset ratio

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.
References in periodicals archive ?
Matthijs added that the company continued to maintain strong working capital ratios, revealing a healthy cash balance of SR526 million ($140.
Backed by its technology backbone including its proprietary customer data analytics that foresees sales trends and recommends production planning, Clovia offers nearly 200 styles per month, with the best working capital ratios in the industry.
He said: "Despite experiencing challenging market conditions, we are maintaining strong working capital ratios, healthy cash balance of SR505 million with zero leveraging and were able to significantly increase the shareholder equity YOY by 15.
Our conversations range from grant funding and working capital ratios to how we can become a cosmic tribe facilitating planetary evolution.
The new funds will enable Mushrif to reduce its balance sheet debt, improve working capital ratios and support the creation of strategic partnerships where appropriate, the company statement said.
The new funds will be utilised to reduce balance sheet debt, improve working capital ratios and support the creation of strategic partnerships where appropriate.
The tools used to analyze this are the individual working capital ratios, and the overall working capital conversion cycle or the days of working capital.
This could reduce working capital ratios for the current portion of the lease obligations.
In other words, asset bubble can burst and most of the working capital ratios of real sector can be deeply affected in the future due to these important developments in the world economy.
While Rehman (2006) studied the impact of the different variables of working capital management including Average Collection Period, Inventory Turnover in Days, Average Payment Period and Cash Conversion Cycle on the Net Operating Profitability of firms and concluded that there was a strong negative relationship between above working capital ratios and profitability of firms.
White Young Green, the planning and construction consultancy company, which has a major Birmingham office, said it expected full-year pretax profits before amortisation to be in line with internal expectations as its margins were stronger, working capital ratios had improved and its order book stood at record levels.