liquidity ratio

a comparison of two accounts in a Balance Sheet, current assets divided by current liabilities. Glossary of Business Terms

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liquidity ratio liquidity ratio ratio

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liquidity ratio UK US noun [C]
ACCOUNTING the value of a company's cash and assets that can be easily changed into cash in relation to the amount of debt it has to pay back, usually over the next 12 months: »

The company is perilously close to being in breach of its liquidity ratio.

BANKING the amount of cash that a bank should have available as a percentage of the total amount of money that customers of the bank have paid into it: »

The banks' statutory liquidity ratio was cut by one percentage point to 24% of their deposits.

See also CASH RATIO(Cf. ↑cash ratio)

Financial and business terms. 2012.

Look at other dictionaries:

  • liquidity ratio — noun (finance) The proportion of a bank s assets that can be converted into cash at short notice • • • Main Entry: ↑liquid …   Useful english dictionary

  • Liquidity ratio — Liquidty Ratio may refer to:* Reserve requirement, a bank regulation that sets the minimum reserves each bank must hold. * Acid Test (Liquidity Ratio), a ratio used to determine the liquidity of a business entity …   Wikipedia

  • liquidity ratio — /lɪ kwɪdɪti ˌreɪʃiəυ/ noun a ratio of liquid assets (that is, current assets less stocks, but including debtors) to current liabilities, giving an indication of a company’s solvency. Also called acid test ratio, quick ratio …   Dictionary of banking and finance

  • liquidity ratio — cash ratio …   Accounting dictionary

  • liquidity ratio — Fin see cash ratio …   The ultimate business dictionary

  • liquidity ratio — relation between the amount of cash at a bank s disposal and the amount of deposits deposited in the bank …   English contemporary dictionary

  • Mutual Fund Liquidity Ratio — A ratio published monthly by the Investment Company Institute that compares the amount of cash relative to total assets held by a mutual fund. Equity investors use the mutual fund liquidity ratio to gauge the demand for shares and the bullishness …   Investment dictionary

  • Statutory Liquidity Ratio — (SLR) is a term used in the regulation of banking in India. It is the amount which a bank has to maintain in the form of cash, gold or approved securities. The quantum is specified as some percentage of the total demand and time liabilities ( i.e …   Wikipedia

  • Коэффициент ликвидности (LIQUIDITY RATIO)  — См. Коэффициент покрытия краткосрочных обязательств, Коэффициент текущей ликвидности (Current Ratio) …   Словарь терминов по управленческому учету

  • ratio — the proportional relationship of one thing to another * * * ratio ra‧ti‧o [ˈreɪʆiəʊ ǁ ˈreɪʆoʊ] noun [countable] a relationship between two amounts that is represented by a pair of numbers showing how much greater one amount is than the other: •… …   Financial and business terms

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