liquidity ratio

(redirected from liquid assets ratio)
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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 ?
The aim of this paper is therefore to describe the development of liquid assets ratios and to find out determinants which affect their values in the Visegrad countries.
As well as the liquid assets ratio being implemented from the start of next year, the UAE central bank has also told banks to be ready to meet further ratios throughout 2013.
The bank continued to maintain a good financial position with liquid assets ratio of 27 percent and capital adequacy ratio of 35 percent.
CBI has strong liquidity and capital with the high eligible liquid assets ratio (ELAR) at 12.
CBI has strong liquidity and capital, evident from the Bank's high Eligible Liquid Assets Ratio (ELAR) at 12.
8m in 2014 with increase of 118 per cent, an excess in the liquid assets ratio of 22.
With these results, the bank sustained its profitability and strengthened its financial position with a liquid assets ratio in the excess of 22.
The liquid assets ratio, as calculated under BNB Ordinance No.
With these results, the bank returned to profitability and strengthened its financial position with a liquid assets ratio of 24.
8 per cent and eligible liquid assets ratio (ELAR) remains as one of the highest at the industry level at 20.
Liquid assets ratio stood at 42 per cent (44 per cent at last year-end).
At the end of the quarter, the regulatory Eligible Liquid Assets Ratio stood at a healthy rate of 18.