Definition of cash ratio in English:

cash ratio

Line breaks: cash ratio

noun

  • 1The ratio of the liquid assets of a company to its current liabilities.
    More example sentences
    • The precautionary motive for cash holdings appears to explain the increase in the average cash ratio.
    • The value of cash ratio is within the recommended range.
    • If neither inventories nor receivables are liquid, the cash ratio may be the better indicator of solvency, because it is the most conservative solvency measure.
  • 1.1The ratio of cash to deposits in a bank (for which minimum values are generally set officially).
    More example sentences
    • Banks like to keep the cash ratio higher than the minimum for various understandable reasons.
    • It was also important to make the statutory cash ratio deposit scheme transparent, so that the Bank was accountable to the institutions placing deposits with it.
    • Minimum cash ratios were stipulated for the banks in the mid-1970s on the basis of their total deposit liabilities, but since such cash ratios were usually lower than those voluntarily maintained by the banks, they proved less effective as a restraint on their credit operations

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