Cash ratio

Updated: Aug 20, 2021

A ratio of cash or cash equivalent holdings to total liabilities of a company, bank, or other financial institution. High cash ratios are supposed to guard against the collapse of such institutions should public confidence in their ability to repay deposits fall.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.