liquidity
Say it: lih-KWID-ih-tee /lɪˈkwɪdəti/ · noun
What “liquidity” means
How easily what you own can become cash.
More precisely: How easily assets can be turned into cash; also, the cash readily available.
Example: “The firm was profitable on paper but lacked the liquidity to pay salaries.”
When to use it
In finance, when discussing whether money can be accessed quickly to cover bills or other needs. It is a formal term.
It can also mean
It can also mean the cash already available to pay bills.
Similar words
cash on hand, cash flow, solvency
Quick check
Your savings are tied up in a building that takes months to sell. What does that asset lack?
profitability or liquidity?
Show the answer
liquidity
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