Net Liquid Assets
A measure that examines a company's net liquid financial assets. The net liquid assets show how much of a company's liquid assets would be left if all current liabilities were paid off.
Calculated as:
Investopedia Says:
For example, if XYZ Inc. has $10 million in liquid assets and $50,000 in current liabilities. XYZ Inc. has $9,950,000 in net liquid assets.
Liquid assets would include cash (and equivalents), stocks, bonds and bank deposits. Common current liabilities would include bills from suppliers and insurance premiums. Related Terms:
Accounts Payable
Accounts Receivable
Asset
Current Liabilities
Financial Asset
Liability
Liquid Asset |