Liquidity

1.

An asset's ability to be turned into cash quickly and without significant loss compared with current market value.

2.

An entity’s ability to pay its obligations when they fall due, especially in the short term.

3.

An entity's ability to source additional funds to meet its obligations, including in the medium and longer term.

4.

A financial ratio designed to measure an entity's ability to meet its obligations when they fall due.

For example, the current ratio or the quick ratio.

See also