cash ratio
cash ratio definition - finance
The
most conservative liquidity ratio for judging the financial stability of a company on a short-term basis. To calculate
cash ratio, add the value of the companyÂ’s cash and short-term marketable
securities and divide the total by current liabilities. This ratio shows the
ability of the companyÂ’s cash on hand to fund short-term liabilities.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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