cash ratio


cash ratio
= liquidity ratio
The ratio of the cash reserve that a bank keeps in coin, banknotes, etc., to its total liabilities to its customers, i.e. the amount deposited with it in current accounts and deposit accounts. Because cash reserves earn no interest, bankers try to keep them to a minimum, consistent with legal reserve requirements.

Accounting dictionary. 2014.

Look at other dictionaries:

  • cash ratio — noun The ratio of cash on hand to total deposits legally or customarily maintained by commercial banks • • • Main Entry: ↑cash …   Useful english dictionary

  • Cash ratio — The proportion of a firm s assets held as cash. The New York Times Financial Glossary * * * cash ratio cash ratio ➔ ratio * * * cash ratio UK US noun [C] (also cash deposit ratio) ► BANKING, FINANCE the amount of money …   Financial and business terms

  • cash ratio — The proportion of a firm s assets held as cash. Bloomberg Financial Dictionary * * * cash ratio cash ratio ➔ ratio * * * cash ratio UK US noun [C] (also cash deposit ratio) ► BANKING, FINANCE the amount of money a bank should have …   Financial and business terms

  • Cash Ratio — Liquiditätsgrade sind insbesondere in der Unternehmensfinanzierung und der Finanzbuchhaltung verwendete betriebswirtschaftliche Kennzahlen, mit denen die Fähigkeit eines Unternehmens, seinen Zahlungsverpflichtungen fristgerecht nachzukommen,… …   Deutsch Wikipedia

  • Cash Ratio — The ratio of a company s total cash and cash equivalents to its current liabilities. The cash ratio is most commonly used as a measure of company liquidity. It can therefore determine if, and how quickly, the company can repay its short term debt …   Investment dictionary

  • cash ratio — liquidity ratio The ratio of the cash reserve that a bank keeps in coin, banknotes, etc. , to its total liabilities to its customers, i. e. the amount deposited with it in current accounts and deposit accounts. Because cash reserves earn no… …   Big dictionary of business and management

  • cash ratio — noun 1》 the ratio of the liquid assets of a company to its current liabilities. 2》 the ratio of cash to deposits in a bank …   English new terms dictionary

  • cash ratio deposits — ➔ deposit1 * * * cash ratio deposits UK US noun [plural] (ABBREVIATION CRD) ► BANKING, ECONOMICS, FINANCE the amount of money the banks of a country have to leave in that country s central bank …   Financial and business terms

  • cash deposit ratio — ➔ ratio * * * cash deposit ratio UK US noun [C] (also cash ratio) ► BANKING, FINANCE the amount of money a bank should have available as a percentage of the total amount of money its customers have paid into the bank. This amount is calculated so …   Financial and business terms

  • ratio — the proportional relationship of one thing to another * * * ratio ra‧ti‧o [ˈreɪʆiəʊ ǁ ˈreɪʆoʊ] noun [countable] a relationship between two amounts that is represented by a pair of numbers showing how much greater one amount is than the other: •… …   Financial and business terms