Liquidity ratio

Liquidity ratio,

Definition of Liquidity ratio:

  1. The relationship between the net assets and liabilities of a bank or other entity.

  2. 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?

  1. 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