Definition of liquidity ratio in US English:

liquidity ratio

noun

Finance
  • The ratio between the liquid assets and the liabilities of a bank or other institution.

    • ‘She said some of the aspects that banks consider when reducing lending rates include the cost of funds which comprises treasury bill rates, standard rates and liquidity ratios.’
    • ‘Financial ratios can be grouped into four categories: liquidity ratios, activity ratios, financing ratios, and profitability ratios.’
    • ‘The average current liquidity ratio moved from 1.37 to 1.38, while the average quick ratio remained unchanged at 0.75.’
    • ‘All it has to do is check your credit rating, interview your bank manager, ascertain your liquidity ratio, undertake an exhaustive survey of your savings and investments and establish your socio-economic status.’
    • ‘Capital adequacy ratio was at 61. 33 per cent whereas liquidity ratio was at 79.43 per cent with net advances at nil.’

Pronunciation

liquidity ratio

/liˈkwidədē ˌrāSHō/