liquidity ratio
noun[C]
ukusACCOUNTING
thevalueof a company'scashandassetsthat can beeasilychangedintocashinrelationto theamountofdebtit has topayback, usually over the next 12months:
Thecompanyisperilouslycloseto being inbreachofitsliquidityratio.
BANKING
theamountofcashthat abankshould haveavailableas apercentageof thetotalamountofmoneythatcustomersof thebankhavepaidinto it:
Thebanks'statutoryliquidityratiowascutby onepercentagepointto 24% oftheirdeposits.
See also
cash ratio