Liquidität (EN)

Definition

Liquidity is the ability of a company to meet its short-term obligations at any time from available funds. It is the fundamental prerequisite for the continuation of the business. Without sufficient liquidity, a company can get into difficulties even with good profitability.

Types of Liquidity

• Market liquidity: Ability to sell assets quickly without significant price discounts
• Balance sheet liquidity: Ability to settle liabilities from existing assets
• Financing liquidity: Ability to take out short-term loans

Liquidity Ratios

• Liquidity Ratio I (Cash Ratio): Ratio of liquid funds to short-term liabilities
• Liquidity Ratio II (Quick Ratio): Ratio of liquid funds and receivables to short-term liabilities
• Liquidity Ratio III (Current Ratio): Ratio of current assets to short-term liabilities

Liquidity Management

flowchart TD   A[Planning] --> B[Budgeting]   B --> C[Cash holdings]   C --> D[Credit lines]   D --> E[Investment decisions]   E --> F[Risk management]   F --> A