Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
50% - Moderately

Overall Liquidity Ratio

Synonyms:business performance ratio
Filed Under: financial-banking, investments
Tags: banking, investment

Definition of overall liquidity ratio

overall liquidity ratio
1. 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.

Related Terms and Acronyms:

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

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