answersLogoWhite

0

The Advance Deposit Ratio (ADR) is calculated using the formula:

[ \text{ADR} = \frac{\text{Total Advance Deposits}}{\text{Total Deposits}} \times 100 ]

This ratio measures the proportion of deposits that are held as advance payments, indicating the level of customer commitment to future transactions or services. A higher ADR suggests a greater reliance on advance payments, which can impact cash flow and liquidity management for businesses.

User Avatar

AnswerBot

2mo ago

What else can I help you with?

Related Questions

Cash deposit ratio definiton and formula?

The cash deposit ratio (CDR) is a financial metric that measures the proportion of a bank's total deposits that are held in cash or cash-equivalent assets. It highlights a bank's liquidity position and its ability to meet withdrawal demands. The formula for calculating the cash deposit ratio is: [ \text{Cash Deposit Ratio} = \frac{\text{Cash and Cash Equivalents}}{\text{Total Deposits}} \times 100 ] This ratio is expressed as a percentage, indicating how much of the deposits are readily available in cash form.


What is an advance deposit?

and advance deposit is money you place with a retailor to put towards your final price with the retailor


What is a 'cash deposit ratio'?

Cash deposit ratio is with reference to a bank's the ratio of average cash balance held against total deposits of a particular branch.


What is Deposit sales?

The deposit sales is the business type of payment , the customer will have to advance the payment before buying. The diffirent between the advance payment sales and deposit sales is about , the Advance Payment - the customer will have to order first then pay regarding to the order Deposit Sales - the customer will pay first before ordering.


Which type of deposit is paid in advance to protect landlords against nonpayments?

security deposit


What is a bank's reserve to deposit ratio?

70%


What is corporate advance deposit?

An advance deposit is money you place with a retailer to put towards your final price. For corporations, this can be advances made on a corporate level, dealing with large numbers.


What is a bank's reserve-to-deposit ratio?

this is the amount of deposit the central bank authorise bank to keep them


What is the formula for beverage cost ratio?

formula for beverage cost ratio


The formula for ordinary interest using exact time is?

The formula for simple (ordinary) interest on a bank deposit is Deposit Amount x Rate x Time (# of days) on Deposit.


What is credit deposit ratio as per RBI guidelines?

60%


What is the Formula for annuity in advance?

can someone please type me the formula of calculatins Present Value (PV) in advance