Corporate Liquidity

Corporate liquidity refers to a company's ability to quickly access cash or liquid assets to meet its short-term financial obligations, such as paying bills, salaries, or suppliers. It indicates how easily a business can cover its immediate expenses without needing to sell long-term assets or secure external funding. Good liquidity means a company can handle unexpected costs or economic fluctuations smoothly, ensuring ongoing operations and financial stability. It is often measured by ratios like current ratio or quick ratio, which compare liquid assets to short-term liabilities.