liquidity ratio Meaning in the Cambridge English Dictionary

Meaning of “liquidity ratio” in the English Dictionary

"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 ​liquidityratio.
BANKING the ​amount of ​cash that a ​bank should have ​available as a ​percentage of the ​totalamount of ​money that ​customers of the ​bank have ​paid into it: The ​banks' ​statutoryliquidityratio was ​cut by one ​percentagepoint to 24% of their ​deposits.
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(Definition of liquidity ratio from the Cambridge Business English Dictionary © Cambridge University Press)
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