What is likviditet (liquidity)?

In short

Likviditet is the business's ability to pay its bills right now — in practice: how much money is available in the account.

In practice

A business can be profitable on paper and still run out of cash, e.g. if customers pay slowly. That's why the liquidity view matters as much as the result.

Related terms

• Bankafstemning (bank reconciliation)
• Egenkapital (equity)
• See every term in the dictionary

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