Liquidity: Difference between revisions

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1. An asset's ability to be turned into cash quickly without significant loss compared with current market value.
1.  


2. An entity’s ability to pay its obligations when they fall due, especially in the short term.
An asset's ability to be turned into cash quickly without significant loss compared with current market value.


3. An entity's ability to source additional funds to meet its obligations.


4. A financial ratio designed to measure an entity's ability to meet its obligations when they fall due.   
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.
 
 
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''.
For example, the ''current ratio'' or the ''quick ratio''.


== See also ==
== See also ==
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* [[Quick ratio]]
* [[Quick ratio]]
* [[Solvency]]
* [[Solvency]]

Revision as of 11:14, 22 August 2013

1.

An asset's ability to be turned into cash quickly 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.


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