| 释义 |
cash ratio
cash ratio n (Banking & Finance) the ratio of cash on hand to total deposits that by law or custom commercial banks must maintain. Also called: liquidity ratio EncyclopediaSeecurrent ratiocash ratio
Cash ratioThe proportion of a firm's assets held as cash.Cash Ratio1. 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 see CASH RESERVE RATIO. |