Net Liquid Assets

DEFINITION of '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:

Net Liquid Assets

BREAKING DOWN 'Net Liquid Assets'

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
  1. Liquidity

    The degree to which an asset or security can be quickly bought ...
  2. Liquidation Value

    The total worth of a company's physical assets when it goes out ...
  3. Current Assets

    A balance sheet account that represents the value of all assets ...
  4. Liquid Market

    A market with many bid and ask offers, low spreads and low volatility. ...
  5. Core Liquidity

    Cash and other financial assets that banks possess that can easily ...
  6. Liquidity Cushion

    A reserve fund for a company or individual made up of highly ...
Related Articles
  1. Investing

    Financial Analysis: Solvency Vs. Liquidity Ratios

    Solvency and liquidity are equally important for a company's financial health. A number of financial ratios are used to measure a company’s liquidity and solvency, and an investor should use ...
  2. Investing

    Calculating Return on Net Assets

    Return on net assets measures a company’s financial performance.
  3. Markets

    Why Is Liquidity Important?

    Learn more on why liquidity is important to consider when examining a stock, next to its share price.
  4. Personal Finance

    How To Improve Net Worth By Decreasing Liabilities

    Here's an analysis of how to adjust liabilities and assets to improve net worth.
  5. Markets

    Explaining the Liquidity Coverage Ratio

    The liquidity coverage ratio requires banks and other financial institutions to hold enough cash and liquid assets on hand to weather market stress.
  6. Investing

    Current Liabilities

    Current Liabilities are company debts due within one year or one operating cycle, whichever is greater. An operating cycle is the time it takes a company to purchase inventory and convert it ...
  7. Markets

    Liquidity Measurement Ratios: Introduction

    By Richard Loth (Contact | Biography)The first ratios we'll take a look at in this tutorial are the liquidity ratios. Liquidity ratios attempt to measure a company's ability to pay off its short-term ...
  8. Investing

    What is Net Worth?

    Net worth is the amount by which assets exceed liabilities. Another way to say this is, it's the value of everything you own, minus all your debts.
  9. Personal Finance

    Evaluating Your Personal Financial Statement

    Determine your net worth by making your own cash flow statement and balance sheet.
  10. Investing

    Value Investing: Finding Value In Financial Reports And Balance Sheets

    There is plenty of information about a company that you'll want to know as a value investor, but that you can't get from a casual glance at a stock quote or from reading most stock market ...
RELATED FAQS
  1. Is liquidity calculated by flow?

    Read about the differences between economic liquidity, financial liquidity and asset liquidity and how each respective type ... Read Answer >>
  2. What is the impact of inflation on liquid assets?

    Find out why inflation is particularly problematic for liquid assets, and learn what holders of liquid assets can do when ... Read Answer >>
  3. What items are considered liquid assets?

    Learn what a liquid asset is, some examples of liquid assets, what a non-liquid asset is and what determines whether as asset ... Read Answer >>
  4. What is liquidity risk?

    Learn how to distinguish between the two broad types of financial liquidity risk: funding liquidity risk and market liquidity ... Read Answer >>
  5. What financial ratios are most useful for an investor to evaluate the liquidity of ...

    Learn which financial ratios are most useful for investors in financial analysis to evaluate the liquidity of an insurance ... Read Answer >>
  6. How much liquidity is considered too much liquidity?

    Learn about the risks of holding too much cash or investing in assets that are too liquid, and discover how liquidity is ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center