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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


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