Definition: The amount of cash or investments that can be quickly converted to cash a company has.

Example: A company with millions in cash and short-term US Treasury bonds would have high liquidity.

Why It’s Important: High amounts of liquidity (i.e. positive cash flow) should be invested at returns better than what you’ll earn leaving them sitting in your checking account. A low amount of liquidity means you can’t pay your bills

Get the FREE Conquering Cash Flow Guide

Do you want more cash flow to capture opportunities and achieve your goals?

Are you stressed out about your business cash flow?

This guide will help you:

  • Get your hands around your current and projected cash flows
  • Increase cash flow and reduce dips in cash flow
  • Identify critical sources of cash for your business

Click here to get the FREE guide!