Liquidity
How quickly and easily an asset can be converted to cash without losing value.
What does liquidity mean?
Cash is the most liquid asset; real estate and collectibles are among the least. Adequate liquidity — for individuals, an emergency fund; for businesses, working capital — prevents being forced to sell assets at a bad time.
Put it to use
Emergency Savings Calculator This calculator helps you determine how much emergency savings you may need, and how you can begin saving toward this important goal. Financial Ratios Calculator This calculator helps you to zero in on areas of your business that may need attention. Areas such as solvency, liquidity, operational efficiency and profitability.
Related terms
All glossary terms