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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.

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