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 ?
Liquid assets ratio stood at 42 percent (44 percent at 2013 year-end).
The UAE central bank has told banks to prepare for a number of liquidity ratios due to come into effect from next year, including the Liquid Assets Ratio (10% of liabilities as liquid assets) and Uses to Stable Resources Ratio (USSR), in preparation for Basel III's implementation in 2015 and 2018.
Lenders will be required to hold 10 per cent of their liabilities in "high-quality liquid assets" from January 1 to meet a new liquid assets ratio, according to the liquidity regulations issued by the central bank July 12 and posted on its website yesterday.
The ratings further incorporate the bank's comfortable capital adequacy ratio and satisfactory liquid assets ratio.
The bank continued to maintain a good financial position with liquid assets ratio of 27 percent and capital adequacy ratio of 35 percent.
At the close of the first quarter the bank reported strong liquidity and capital position with liquid assets ratio stood at 33.2 per cent with cash and due from banks at Dh44 billion as at March end 2019.
The bank's liquid assets ratio stood at 33.2 per cent with cash and due from banks at Dh44.0 billion in the quarter.
The Eligible Liquid Assets Ratio rose by the end of November to 17 per cent from 16.5 per cent in October with the Capital Adequacy Ratio up to 18.2 per cent, a significant growth that reflects the UAE banking sector's robust solvency position, reported state-run news agency Wam.
Strong Eligible Liquid Assets Ratio at 12.2 per cent.
"The evaluation process and the recognition reflects the successful execution of the bank's new strategy through which we achieved a net profit of BD8 million compared with BD3.8m in 2014 with increase of 118 per cent, an excess in the liquid assets ratio of 22.5pc and capital adequacy ratio of 18.8pc, all this despite the difficult market challenges," he added.
The liquid assets ratio, as calculated under BNB Ordinance No.11, increased to 31.78%.