Definition of Liquidity ratio:
The relationship between the net assets and liabilities of a bank or other entity.
Calculation of cash and securities available by the company against outstanding debt. The index measures a company's ability to repay short-term debt. A high index identifies companies with low risk.
How to use Liquidity ratio in a sentence?
- You need to check your credit rating, interview the bank manager, find out your liquidity ratio, thoroughly study your savings and investments and find out your socio-economic status.
Meaning of Liquidity ratio & Liquidity ratio Definition