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Cash Ratio is a financial ratio that is used to identify the amount of a company's assets that are maintained as cash or near cash entities. This is extremely important for banks and financial institutions (If you go back to the beginning of this article to the bank - cash withdrawal example, you can now relate the fact that I was in fact talking about this ratio only)
Formula:
Cash Ratio = (Cash + Marketable Securities) / Current Liabilities.
Companies strive to maintain a good cash ratio but at the same time try to ensure that they do not hold on to too much cash that is lying idle in their bank accounts.
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What is CLR rate of bank?
cash liquidity ratio
How do you calculate Bank liquidity ratio?
Cash and near cash/Customers deposit and other current liabilities
What is the Price and Earnings ratio when a company has an Earnings Per Share of 2.00 and a cash flow per share of 3.00 and a price and cash flow ratio of 8.0?
A company has an EPS of $2.00 Cash flow per share of $3.00 Price/cash flow ratio of 8.0x What is its P/E ratio? Price Per Earnings Ratio = Market Value Per Share / Earnings Per Share (EPS) 8.0 x 3.00 = 24 24/2 P/E = 12X
What is the definition of a liquidity ratio?
Liquidity ratio are designed to test a company's ability to meet its short-term financial obligations. To find the ratio, you take Cash and Cash Equivalent + Marketable Securities + Accounts Receivable divided by Current Liabilities.
What is the Current cash debt coverage ratio?
Net cash provided by operating activies / average current liabilities
cash ratio?
this ratio assesses whether a company can pay its obligations using its cash. cash ratio is calculated using the following formula:Cash ratio = Cash and cash equivalents / Current liabilities
Formula for calculating cash debosit ratio?
cash reserve ratio
What is a 'cash deposit ratio'?
Cash deposit ratio is with reference to a bank's the ratio of average cash balance held against total deposits of a particular branch.
What is cash adequacy ratio?
Cash Flow Adequacy Ratio is the performance measure of cash sufficiency. It shows whether the company has enough cash to meet its expenses. A ratio of less than one means they don't have enough cash, and above one means their cash flow is sufficient.
What is cash flow adequacy ratio?
Cash Flow Adequacy Ratio is the performance measure of cash sufficiency. It shows whether the company has enough cash to meet its expenses. A ratio of less than one means they don't have enough cash, and above one means their cash flow is sufficient.
Operating Cash Flow to Current Liabilities Ratio?
operating cash flow to current liabilities ratio = cash flow from operations / avg. total liabilities
Declaring cash dividends effect on current ratio?
decrease current ratio
What is current cash reserve ratio?
The current cash reserve ratio (CRR) in India set by the RBI is 5% as on 21st august, 2009.
What is cash coverage ratio?
The cash coverage ratio is useful for determining the amount of cash available to pay for interest, and is expressed as a ratio of the cash available to the amount of interest to be paid.To calculate the cash coverage ratio, take the earnings before interest and taxes (EBIT) from the income statement, add back to it all non-cash expenses included in EBIT (such as depreciation and amortization), and divide by the interest expense. The formula is: Earnings Before Interest and Taxes + Non-Cash Expenses Interest Expense.
What is cash turnover ratio?
Cash turnover ratio describes that how many time cash cycle has repeated in any fiscal year that means how many time inventory is purchased and converted to finished goods and cash is received from debtors.
What is Operation Cash Flow Ratio?
Operation Cash Flow Ratio is a financial ratio that is used to identify the percentage of money raised by the company as part of the operation cash flow to the total debt the company owes. Operating cash flow is the cash generated from the operations of the organization after excluding taxes, interest paid, investment income etc.FormulaOCFR = Operation Cash Flow / Total Debts
What is current cash reserve ratio in 2011?
the current CRR ratio of 2011 is 6%.
