Overall Liquidity Ratio
Definition
- 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.
Synonyms
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.
