Net Liquid Assets

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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

INVESTOPEDIA EXPLAINS '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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