The present page holds the title of a primary topic, and an article needs to be written about it. It is believed to qualify as a broad-concept article. It may be written directly at this page or drafted elsewhere and then moved to this title. Related titles should be described in Liquidity ratio, while unrelated titles should be moved to Liquidity ratio (disambiguation). | ![]() |
Liquidity ratio may refer to:
- Reserve requirement, a bank regulation that sets the minimum reserves each bank must hold.
- Quick ratio (also known as an acid test) or current ratio, accounting ratios used to determine the liquidity of a business entity
In accounting, the liquidity ratio expresses a company's ability to repay short-term creditors out of its total cash. It is the result of dividing the total cash by short-term borrowings. It shows the number of times short-term liabilities are covered by cash. If the value is greater than 1.00, it means fully covered.
The formula is the following:
LR = liquid assets / short-term liabilities
Liquidity ratios measure how quickly assets can be turned into cash in order to pay the company's short-term obligations. Following ratios can be considered to measure the liquidity of a firm.
- Working Capital
- Working Capital Ratio
- Current Ratio
- Quick Ratio
- Absolute Liquid Ratio
See also
edit🔥 Top keywords: Akademia e Shkencave e RPS te ShqiperiseAlexandria Ocasio-CortezBilderberg GroupCristiano RonaldoDong XiaowanMinecraftOperation GladioPrimal cutRiot FestStrictly Come Dancing (series 7)Main PageSpecial:SearchWikipedia:Featured picturesUEFA Euro 2024Donald SutherlandJacob FatuInside Out 2CleopatraUFC on ABC: Whittaker vs. AliskerovDeaths in 2024List of teams that have overcome 3–0 series deficitsCristiano RonaldoUEFA European ChampionshipChappell RoanJessica AlbaSam FatuHouse of the Dragon2024 Copa AméricaYouTubeRomelu Lukaku.xxxSherri Papini kidnapping hoaxPepe (footballer, born 1983)Project 2025The BikeridersTaylor Wily2024 ICC Men's T20 World CupSabrina CarpenterKiefer SutherlandThe Boys (TV series)Copa AméricaKalki 2898 ADHinduja GroupTaylor SwiftOpinion polling for the 2024 United Kingdom general electionThe Boys season 4BridgertonShania TwainGeorgia (country)