liquid capital JUST WRITTEN FOR YOU
/ˈlɪkwɪd ˈkæpɪtəl/ · liq·uid cap·i tal
noun
- A company's liquid capital refers to its ability to meet its short-term financial obligations, such as paying bills and salaries, without having to sell its long-term assets. The company's liquid capital was sufficient to cover its expenses for the next quarter.
- In personal finance, liquid capital can refer to an individual's easily accessible savings or investments that can be quickly converted into cash. She used her liquid capital to pay for her emergency medical expenses.
Did you know? The concept of liquid capital is crucial in finance, as it helps businesses and individuals manage their cash flow and make informed investment decisions.