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cash ratio
(redirected from cash ratios)

   Also found in: Financial 0.01 sec.
cash ratio
n
(Economics, Accounting & Finance / Banking & Finance) the ratio of cash on hand to total deposits that by law or custom commercial banks must maintain Also called liquidity ratio


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An analysis of companies' cash ratios shows that more than 20 percent have a cash ratio of less than 0.
7) Cash ratios reflect adjustments to exclude amortization expense on intangible assets, net of related taxes.
Cash current debt coverage Operating cash flow - cash dividends / Current debt Company's ability to repay its current debt HOW TO USE CASH RATIOS AS A MEASURE OF FINANCIAL HEALTH Beyond questions of immediate corporate solvency, auditors need to measure a client's ability to meet ongoing financial and operational commitments and its ability to finance growth.
 
 
 
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