Cash ratio

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Written on Aug 20, 2021
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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.


Sources & references

James Knight

James Knight

Editor of Education

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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. His main focus is on improving financial literacy among casual investors. He has been with Invezz since the start of 2021 and has been...