Cash asset ratio

(redirected from Working-Capital Ratios)

Cash asset ratio

Cash and marketable securities divided by current liabilities. See: Liquidity 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.

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