Overall Liquidity Ratio


  • A ratio used to determine the liquidity of a company, or to determine their ability to use assets to cover liabilities in a timely manner. The overall liquidity ratio is calculated by dividing the total value of the company's assets by its liabilities, less conditional reserves.

business performance ratio

Related Terms and Acronyms

  • Acid-Test Ratio Definition,
    • A ratio that determines the liquidity of a company without requiring the company to sell assets or inventory.
  • Current Market Value (CMV) Acronym,
    • The estimated price determined by the recent sale of similar properties.
  • Current Ratio Definition,
    • A method of determining an entity's liquidity and its ability to cover its current liabilities.
  • Liquidity Definition,
    • The ability to convert assets to cash quickly, without significant losses.
  • Ratio Definition,
    • Comparison of two figures used to evaluate business performance, such as debt/equity ratio and return on investment.
  • Total Admitted Assets Definition,
    • What assets an insurance company is legally allowed to include when determining its financial solvency.
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