Blog

Read posts from our network of cash flow experts

Liquidity – The State of Your Company’s Assets

Nov 13, 2018 11:21:51 AM

“I’m very liquid”, you hear the giants of industry say.  I think we all jump to the conclusion that the person making the statement has a lot of cash.  In general, we would be right.  Liquidity by definition is a company’s ability to convert its assets into cash to pay its liabilities.  It’s often expressed in the form of ratios like the current ratio.  But few people understand the state of liquidity they might be in and how to become “liquid”.

By Seth David

About CashFlowTool.com

CashFlowTool is a product developed by Finagraph. We're a technology company that's passionate about helping small business owners, accountants, and lenders deeply understand the financial health of companies. Finagraph’s trusted technology helps power services provided by companies including Moody’s Analytics, Jack Henry & Associates and leading banks. Learn more


(206) 922-4502

15500 SE 30th Pl #101, Bellevue, WA 98007

© Finagraph. All Rights Reserved.