Cash asset ratio

Cash Asset Ratio
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The cash asset ratio of a company is defined as the current market value of its liquid assets, usually in the form of securities and cash on hand, divided by its current outstanding liabilities.

Cash asset ratio
Definition:
Cash and Marketable securities divided by current liabilities. See: Liquidity ratios. ...

Part of the key to making an accurate cash asset ratio is understanding the nature of any marketable securities. This involves the consideration of two factors. First, the current market value of each of the securities should be verified.

Cash asset ratio
Cash and marketable securities divided by current liabilities. See: Liquidity ratios.

Cash Asset Ratio or Cash Ratio
liabilities. The cash asset ratio is used to measures the corporations ability to quickly liquidate assets and cover short-term liabilities. The cash asset ratio is typically of interest to short-term creditors.

Also called the Cash Asset Ratio, the Cash Ratio is the most rigid liquidity ratio used to measure a company's ability to cover liabilities in the short term. The Quick Ratio and Current Ratio are similar, but both are somewhat less strict.

cash asset ratio Total dollar value of cash and marketable securities divided by current liabilities.... cash basis The bookkeeping practice of recording sales and expenses only when cash is actually...

Acid test ratio (or quick ratio)
Cash Asset Ratio or Cash Ratio
Current ratio
Defensive Interval ratio ...

See also: Liabilities, Liquidity, Asset, Market, Cash