cash ratio


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Related to cash ratio: Quick ratio, Operating Cash Flow Ratio

Cash ratio

The proportion of a firm's assets held as cash.

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.

cash ratio

A type of current ratio measure that compares a firm's cash and cash equivalents with its current liabilities. A firm's cash ratio is a demanding test of its liquidity. Compare quick ratio.

cash ratio

see CASH RESERVE RATIO.
References in periodicals archive ?
Proxies for Information Asymmetry and Firm Characteristics This table reports summary statistics on the following target and acquirer characteristics in the year prior to the M&A: analyst coverage (number of financial analysts), analyst forecast dispersion (standard deviation EPS/stock price), analyst forecast error (absolute value of the difference between the median EPS estimate and actual value/stock price), media coverage (number of Factiva articles in pre-M&A year), implied volatility, total assets, market capitalization, the market-to-book ratio of equity (M/B), the cash ratio (cash and cash equivalents/total assets), the debt ratio (total debt/total assets), profitability (EBITDA/total assets), and R&D (R&D expenses/total assets).
S AK ENERJI RATIOS 2005 2006 2007 2008 Current Ratio % 345 322 297 203 Liquidity Ratio % 200 251 254 187 Cash Ratio % 173 215 154 91 Table 3: 2008-2013 Liquidity Ratios of Ak Enerji A.
We follow Fresard (2010), adopting Z-scored cash holdings to measure cash level of a company, more specifically, ZCash, is the annual cash holding ratio minus the mean of industry-year cash ratio based on all companies within the industry and divide standard deviation of industry-year level of cash holdings, also can be referred as relative-to-industry cash.
Company Cash Ratio Institutional Insider Name Difference Holdings Holdings Difference Difference ADEN -6.
Confidence = 70 IF: Do you want to analyze the liquidity risk based on the cash ratio ratio?
However, upon rising local financing opportunities, cash ratio decreased to 10.
Even though it is not as monotone as for the aggregates, the cash ratio increased substantially over the past three decades.
37 sufficiency of cash Ratio of repayment of debt -- -- -- Interest coverage ratio -- -- -- Long-term debt ratio -- -- -- Ratio of financing of -0.
Concerning cash ratio, group II had statistically significant, superior values (difference reaches 73.
For example, firms with greater leverage are more likely to suffer from financial distress than firms with low leverage, and the cash ratio measures the amount of liquid assets that the firm has on hand that could be used to make up a short fall in operating cash flows.
0]: Crisis era Cash Ratio is not significantly differing from pre-crisis era.
The common measures of liquidity are: Current ratio, Quick ratio, Cash ratio, Net Working Capital (NWC) and Net Working Capital ratio.