Meaning of “liquidity ratio” in the English Dictionary

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"liquidity ratio" in Business English

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liquidity rationoun [ C ]

uk us

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