From Longman Business Dictionaryliquidity ratioliˈquidity ˌratioACCOUNTINGBANKING the amount of cash or other liquid assets that a company has in relation to the amount of money it owes, or that a bank has in relation to the amount of money that customers have put into the bankIf a financial institution’s liquidity ratio is too high, it will make too little profit. → ratio
