Primary Reserve Ratio

Financial Ratios[None]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.

Formula

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Tags

Liquidity, commitment

Metadata

Category: Financial Ratios · Added: May 17, 2026

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