Liquidity: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Link with qualifications page) |
imported>Doug Williamson (Added refinement to definition 3 re: length of term as per L4) |
||
| Line 11: | Line 11: | ||
3. | 3. | ||
An entity's ability to source additional funds to meet its obligations. | An entity's ability to source additional funds to meet its obligations, including in the medium and longer term. | ||
Revision as of 10:15, 7 February 2015
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, 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.
