liquidity ratio
noun [ C ]
ukus 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.
See also
cash ratio