cash ratio


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Related to cash ratio: Quick ratio, Operating Cash Flow Ratio

cash ratio

n
(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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In particular, we take into account the target's and the bidder's market-to-book ratio of equity, the cash ratio, the debt ratio, profitability, and R&D intensity.
Figure 1 shows that only minor differences are apparent in the cash ratio when comparing the U.
Doubting the method of coping with the error of Tobin Q in the previous research, Riddick and Whited (2008) correct the measurement error in Tobin Q and find that there is a negatively significant relationship between cash holding and the safety of cash flow, probably companies will choose to reduce cash ratio after they obtaining positive cash inflow.
For example, if we assume 1 - q = 8 percent, the required minimum cash ratio rises sharply to 26 percent, while at 1 - q = 10 percent, the required minimum escrowed cash holding surges to 45 percent of equity value.
Another newly added feature is Pre-trade Checking, which can forbid a dealer to buy / sell a specific stock, limit the maximum holdings of a specific stock and the lowest cash ratio of a portfolio etc, ensuring all trades can be executed under the default setting made by fund manager.
Also the cash ratio of the industry is not much stronger as the industry has to pay high debt to its suppliers.
i] is the Cash Ratio Difference for sponsor i, [CR.
Cash ratio denotes the extent to which readily available funds can pay off current obligations.
Both aggregate technology and liquidity shocks can justify the negative comovement between employment and the corporate cash ratio.
Bates found a positive association between his cash ratio (cash divided by total assets) and a market-to-book variable.
3 Liquidity ratio analysis index X 1 Quick ratio alarm Asset-liability ratio subsystem X Equity ratio Cash ratio Equity multiplier Operation 0.