CASH RATIO Definition

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CASH RATIO is a refinement to the QUICK RATIO. It is the ratio of cash and marketable securities to current liabilities. The CASH RATIO indicates the extent to which liabilities could be liquidated immediately. Sometimes called LIQUIDITY RATIO.

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PBT see PROFIT BEFORE TAXES.

DISBURSE/DISBURSEMENT is the paying out of money to satisfy a debt or an expense.

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