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.

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  1. Do prepayments provide working capital?

    Prepayments, or prepaid expenses, are typically included in the current assets on a company's balance sheet, as they represent ... Read Full Answer >>
  2. Does working capital include inventory?

    A company's working capital includes inventory, and increases in inventory make working capital increase. Working capital ... Read Full Answer >>
  3. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  4. Are dividends considered an asset?

    Whether dividends paid on stock are considered an asset depends on which role you play in the investment: the issuing company ... Read Full Answer >>
  5. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
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