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

References in periodicals archive ?
Henceforth, we focus on the cash ratio, which is defined as the ratio of cash and equivalents to total assets:
Company Cash Ratio Institutional Insider Name Difference Holdings Holdings Difference Difference ADEN -6.
We select the following characteristics commonly used in the relevant analysis: 1) size (measured as the log of the market value of equity), 2) book-to-market (the book value divided by the market value of equity), 3) earnings per share, 4) leverage (total debt divided by the value of total assets), 5) price-to-earnings ratio, 6) cash ratio (cash and short-term investments to total assets), and 7) the company shares' turnover (the number of shares traded per year scaled by the firm size).
The CRO hiring firms are, on average, more levered, and have lower cash ratios.
As depicted in Table 2, the Aheferom Union shows high cash ratio because it carried relatively large amount of cash in all three years.
Cash ratio can be compared to quick ratio as a more intense measurement of the company's ability to meet current liabilities.
The profitability ratios, activity ratios, liquidity ratios and solvency ratios for each of the above markets have been analysed and ratios such as gross margin, net income margin, return on assets, asset turnover, current ratio, cash ratio and cashflows to debt ratios have been analysed and their trends in each of the market have been presented.
This led to a marginal decline in its liquidity indicators such as current ratio, quick ratio and cash ratio.
In opting for highly liquid balance sheet items, mainly the cash and balances with SAMA and the due from banks, Saudi banks held their cash ratio at a comfortable 10 percent by the end of Q3, 2010 as well as striking a five-year high minimum risk assets ratio at 32.
For models of acquisition likelihood (Equation 1), the control variables are log market capitalization, cash ratio, leverage, return on equity, relative exchange rate, a 144A private placement dummy, and an interaction term C[L.
Cash Balanced" - Keep the cash ratio of a basket within a specified dollar tolerance of a specified ratio.
An even more conservative ratio is the Cash Ratio , which measures only a company's cash (including cash equivalents and short-term securities) against its current liabilities: (Cash + Cash Equivalents + Short-term Securities) / Current Liabilities.