Total dollar value of cash and marketable securities divided by current liabilities. For a bank this is the cash held by the bank as a proportion of deposits in the bank. The cash asset ratio measures the extent to which a corporation or other entity can quickly liquidate assets and cover short-term liabilities, and therefore is of interest to short-term creditors. also called liquidity ratio or cash ratio.
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Cash Ratio CaR or Cash Asset Ratio (CAR) is a method or a formula for capturing the liquidity of a company by comparing company's cash reserves and ...
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A ratio of a company's cash and liquid assets to its total liabilities. A cash asset ratio measures a company's liquidity and how easily it can service debt and cover ...
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Definition of cash asset ratio: Total dollar value of cash and marketable securities divided by current liabilities. For a bank this is the cash held by the bank as a ...
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Sometimes referred to as a liquidity ratio, the cash asset ratio has to do with the total amount of cash on hand and securities that could be easily turned into cash, ...