- Source: Liquidity ratio
Liquidity ratio may refer to:
Reserve requirement, a bank regulation that sets the minimum reserves each bank must hold.
Quick ratio (also known as an acid test) or current ratio, accounting ratios used to determine the liquidity of a business entity
In accounting, the liquidity ratio expresses a company's ability to repay short-term creditors out of its total cash. It is the result of dividing the total cash by short-term borrowings. It shows the number of times short-term liabilities are covered by cash. If the value is greater than 1.00, it means fully covered.
The formula is the following:
LR = liquid assets / short-term liabilities
Liquidity ratios measure how quickly assets can be turned into cash in order to pay the company's short-term obligations. Following ratios can be considered to measure the liquidity of a firm.
Working Capital
Working Capital Ratio
Current Ratio
Quick Ratio
Absolute Liquid Ratio
See also
Accounting liquidity
Liquidity coverage ratio
Market liquidity
Kata Kunci Pencarian:
- Rasio lancar
- Analisis fundamental
- Gelembung ekonomi
- Liquidity ratio
- Statutory liquidity ratio
- Quick ratio
- Basel III
- Current ratio
- Financial ratio
- Accounting liquidity
- Reserve Bank of India
- Industry average
- Reserve requirement
