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English definition of “liquidity ratio”

liquidity ratio

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
(Definition of liquidity ratio from the Cambridge Business English Dictionary © Cambridge University Press)
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