Liquidity: Difference between revisions
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imported>Doug Williamson (Added refinement to definition 3 re: length of term as per L4) |
imported>Doug Williamson (Expand first definition.) |
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An asset's ability to be turned into cash quickly without significant loss compared with current market value. | An asset's ability to be turned into cash quickly and without significant loss compared with current market value. | ||
Revision as of 11:58, 3 May 2015
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.
