Primary Reserve Ratio
Definition
The Primary Reserve Ratio is a measure of financial viability and a broad measure of the liquidity. Because this ratio measures expendable resources within the context of operating size, it is a measure of relative wealth or wealth against commitments. The Primary Reserve Ratio serves as a direct measure of an companies viability and an indirect measure of its liquidity.
Tags
Liquidity, commitment
Metadata
Category: Financial Ratios · Added: May 17, 2026
Metrics & KPIs