Cash asset ratio(redirected from Working-Capital Ratios)
Cash asset ratio
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved