liquidity ratio


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Related to liquidity ratio: Activity Ratio, Solvency Ratios

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.

liquidity ratio

1. A measure of a company's ability to meet its short-term obligations achieved through a comparison of financial variables. See also current ratio, quick ratio, working capital.
2. The value of trading in a stock that is required to change the stock's price by 1%. A high ratio indicates the stock has considerable liquidity. A stock's liquidity ratio is of primary importance to institutions and traders that deal in large volume and that wish to avoid securities with a lack of liquidity.

liquidity ratio

see CURRENT RATIO.

liquidity ratio

see RESERVE-ASSET RATIO.
References in periodicals archive ?
Taipei, July 16, 2012 (CENS) -- The Financial Supervisory Commission (FSC) plans to follow the new version of Basel Capital Accord and introduce two new standards for the liquidity ratios of financial institutions, which will entail stricter definitions for qualified liquid assets.
From October, the minimum liquidity ratio for banks will be 10 percent.
Restitutions deposits: The liquidity ratios of these deposits, which stand at 90 percent today, will be gradually reduced by between 1/2 and 2 percent a month, bringing them into line with the liquidity ratios of the other foreign-currency deposits.
The central bank said that the liquidity ratio of most of the banks and lending institutions in Taiwan were already above 10 percent.
There are upward pressures on the FSR, but an increase in the rating would require liquidity ratios to strengthen further.
In the previous report on the Bank, a 'Positive' Outlook had been appended to its FSR in view of the positive trend in liquidity ratios and the expectation of rising net profitability.
CI also notes the UAB's loan-based liquidity ratios had improved at end 2013 and despite the worsening of key ratios at the end of the first quarter of 2014, the trend has reversed and end 2014 ratios are likely to show further improvements.
Harting, "public debt and liquidity ratios are now superior to peers because higher oil prices have underpinned rapid economic expansion, export growth, and reserve accumulation.
FDU's liquidity ratios are at the low end of Fitch's medians of 41.
Liquidity Ratios - OM Group is more leveraged than its peer companies
Liquidity Ratios - Adams Golf is the most leveraged company amongst its competitors.
Liquidity ratios and debt to cap ratios, which historically have been below Fitch's 'A' rated medians because of the system's substantial investment in plant over the past several years, will be further stressed after this financing.