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      • A company's liquid asset total also impacts a number of key financial ratios. Companies use metrics such as the cash, current and quick ratio to assess how well the business manages its money. Financial institutions look at these ratios when evaluating a business as a candidate for a loan.
      www.investopedia.com/ask/answers/052015/what-affects-assets-liquidity.asp

      What are liquid assets, and why are they beneficial to a ...

  2. www.investopedia.com › terms › lUnderstanding Liquidity Ratios: Types and Their Importance

    Jun 13, 2024 · Liquidity ratios measure a company's ability to pay debt obligations and its margin of safety through the calculation of metrics including the current ratio, quick ratio, and...

  3. www.investopedia.com › ask › answersWhat are liquid assets, and why are they beneficial to a ...

    Jan 22, 2023 · A company's liquid asset total also impacts a number of key financial ratios. Companies use metrics such as the cash, current and quick ratio to assess how well the business...

    • Claire Boyte-White

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  5. aspireapp.com › blog › liquid-assets-explainedLiquid Assets Explained, With Examples, Uses, And Liquidity ...

    • Cash. Includes physical money (local and foreign currency) as well as the savings account and/or current account balances.
    • Cash equivalents. Cash equivalents are investment securities with a maturity period not exceeding a year. Examples include treasury bills, treasury bonds, certificates of deposit, and money market funds.
    • Marketable securities. Stocks, bonds, and exchange traded funds (ETFs) are examples of marketable securities with a high degree of liquidity. They can be sold easily and it usually takes just a few days to receive the cash from their sale.
    • Accounts receivable. Money owed to a business by its customers for goods and services provided makes up accounts receivable. The liquidity of accounts receivable varies.

  6. accountinginsights.org › liquidity-analysis-ratiosLiquidity Analysis: Ratios, Benchmarks, and Financial ...

    May 28, 2024 · Liquidity ratios are essential tools in financial analysis, offering a snapshot of a company’s ability to cover its short-term liabilities with its short-term assets. These ratios help stakeholders gauge the immediate financial stability of an organization.

  7. www.netsuite.com › portal › resourceWhat is Liquidity and Why Does it Matter to Businesses?

    Dec 22, 2020 · Liquidity is a measure companies uses to examine their ability to cover short-term financial obligations. It’s a measure of your business’s ability to convert assets—or anything your company owns with financial value—into cash. Liquid assets can be quickly and easily changed into currency.

  8. corporatefinanceinstitute.com › liquidity-ratioLiquidity Ratio - Overview, Types, Importance, Example

    A liquidity ratio is a type of financial ratio used to determine a company’s ability to pay its short-term debt obligations. The metric helps determine if a company can use its current, or liquid, assets to cover its current liabilities. Three liquidity ratios are commonly used – the current ratio, quick ratio, and cash ratio.

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  10. www.investopedia.com › articles › basicsWhat Financial Liquidity Is, Asset Classes, Pros & Cons, Examples

    Jul 19, 2022 · Liquidity ratios typically compare a company's current assets to its current liabilities to measure what short-term assets it has available to pay for its short-term debt.