In Bank balance sheet we will not be able to directly take current assets & current liabilities. As per the link: http://www.credfinrisk.com/bank.html, current assets and current liablities can be calculated as below. Current Assets / Liquid assets · Cash and cash due from Central Bank; cash on deposit in postal banking accounts; Due from Banks; Interest-bearing deposits in other banks · Cash held in trust: may be on the behalf of a third party or the result of a merger/acquisition and may have restrictions encumbering its usage. · Due from banks: demand and time deposits with other banks (does not include loans to banks that may be termed time deposits due from banks) and although there is a slight element of risk involved, it is still considered cash. · Negotiable certificates of deposit (should be stated at the lower of cost or net realizable value). · Marketable securities: U.S. Treasury and other U.S. government agencies, States and political subdivisions, exchange listed (publicly traded) securities such as corporate bonds equities, Asset-backed securities Mortgage-backed securities. This account is also sometimes known as Securities Available-for-Sale (amortized; price movements in these securities are dependent upon the movement in market interest rate). Current liabilities · Due to customers (onsight or time deposits): Savings accounts, regular checking accounts, NOW accounts, money market deposit accounts, CDs. · Core deposits consist of all interest-bearing and noninterest-bearing deposits, except certificates of deposit over $100,000. They include checking interest deposits, money market deposit accounts, time and other savings, plus demand deposits. Core deposits represent the most significant source of funding for a bank and are comprised of noninterest-bearing deposits, interest-bearing transaction accounts, nonbrokered savings deposits and nonbrokered domestic time deposits under $100,000. The branch network is a bank's principal source of core deposits, which generally carry lower interest rates than wholesale funds of comparable maturities. · Due to banks (on-sight or time deposits) · Commercial paper issued (rollover every 30 to 270 days) · Short-term borrowings are usually from banks, securities dealers, the Federal Home Loan Bank, unsecured federal funds borrowings, which generally mature daily. · Dividend payable (preferred stock dividend in arrears)
The ideal current ratio for banks 1.33 : 1
current raiot, working capital ratio, liquidity ratio, capital adequacy ratio, net asset ratio
Statutory liqudity ratio means all the banks maintained it in the form of cash in hand (exclusive of the minimum cash reserve ratio),Current account balances with SBI and other public sector commercial banks, unencumbered approved securities and gold. RBI prescribes SLR from 25% to 40%.
acid test ratio = quick assets / current liabilitiesacid test ratio = 150000 / 100000acid test ratio = 150 %
a large portion of current assets is in inventory
The ideal current ratio for banks 1.33 : 1
current raiot, working capital ratio, liquidity ratio, capital adequacy ratio, net asset ratio
Formula for current ratio is as follows: Current ratio = Current assets / current liabilities
the two ratios that measure liquidity is acid test and current ratio. the acid test ratio is current assets- stock/ current liabilities the current ratio is current assets/ current liabilities
current ratio and acid test ratio are examples of liquidity ratios'. current ratio is current asset's/ current liabilities. acid test ratio is current assets- stock / current liabilities.
The ratio between current assets to current liability is called "Current Ratio".
Current Ratio = Current Assets / Current Liabilities
Statutory liqudity ratio means all the banks maintained it in the form of cash in hand (exclusive of the minimum cash reserve ratio),Current account balances with SBI and other public sector commercial banks, unencumbered approved securities and gold. RBI prescribes SLR from 25% to 40%.
current ratio = current asset divided by current liability
no they are not the same. the current ratio is current assets/current liabilities. but liquidity ratio or acid test ratio is current assets - stock/current liabilities. liquidity ratio shows you how able a business is to pay off its debt when stock is taken out of the equation.
Current ratio = current assets / current liabilityCurrent ratio = 10000 / 2000current ratio = 500%
this ratio analyzes whether a company can pay off its short-term obligations using its current assets. generally, the ideal current ratio for a company is considered to be 2.00. current ratio is calculated using the following formula:Current ratio = Current assets / Current liabilities