Cash asset ratio

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Related to Current Ratios: Quick ratio, Acid Test 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 ?
The current ratio is probably one of the most common and basic measures of short-term liquidity.
Using data from 2013, the author determined what the current assets, current liabilities, and current ratios would have been for a large sample of U.S.
Electronic tuning of the Tow-Thomas biquad in terms of gain ([H.sub.0]), central frequency (fc) and quality factor (Q) is expressed in (9) as a function of OTA bias current ratios.
Exhibit 2 shows trends in the current ratios for the two companies, while Exhibit 3 shows CCC trends.
Explain why it is not surprising that the two Table 1 firms with the smallest differences between their current ratios and quick ratios are Brinker and Southwest Airlines.
Farm A Farm B Accrual Adjusted Net Income $50,000 $100,000 Total Assets $400,000 $1,000,000 TABLE 10-3 Example of Current Ratios with and without Growing Crop.
After calculating the leverage and current ratios and comparing them to industry averages, the next step in the process is to review the statement of cash flow.
When comparing current ratios with previous ratios, a manager should look for trends.
Our research findings strongly support the contention that systematic differences exist among the Current Ratios and Dept Ratios for Small Companies versus Large Companies.
In addition, Meridian's Emerging Markets database delivers pre-calculated historical and current ratios, as well as fully adjusted pricing, earnings, and dividend data, company profile, and contact information.
A company's risk class is determined by the lowest ranking of the four ratios, current ratios, quick ratio, current debt to net worth, and total debt to net worth.

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