Liquidity

Definition

  • A measure of how quickly an entity can convert assets into money without taking a sizable loss. There are different types of liquidity. Quick liquidity refers to assets which can be quickly converted into cash.

Synonyms
convert to cash, cash out, sell off, solvency

Related Terms and Acronyms

  • Cash Collateral Definition,
    • The proceeds of cash collected from the sale of liquid assets while in bankruptcy.
  • Illiquid Asset Definition,
    • An asset that cannot be sold easily or in a timely manner for its full value.
  • Liquid Assets Definition,
    • Cash and other property that can be converted quickly and easily into cash.
  • Liquidation Definition,
    • To settle the outstanding debts by selling property.
    • To convert into cash.
    • The practice of selling or redistributing some or all of a business's assets in order to repay debts or pay investors if the business becomes insolvent or is sold in full or in part.
  • Non-liquid Asset Definition,
    • A possession that can't be transformed readily into cash. Stocks and bonds are liquid assets because they can be sold easily; a house is a non-liquid asset because it takes time to sell.
  • Overall Liquidity Ratio Definition,
    • A method of determining how easily and quickly a company can sell off assets to pay off its debts.
  • Quick Assets (QA) Acronym,
    • Assets that can be liquefied quickly without a loss.
  • Quick Liquidity Ratio Definition,
    • A metric used to find if a company has enough liquidity to make it's short term financial obligations.
  • Receivership Definition,
    • A form of bankruptcy where a person is appointed to take control of a company and is responsible for recouping unpaid debts.
  • Solvency Definition,
    • To be able to meet one's financial liabilities in the short or long term.
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