Concept in Definition ABC

The concept of liquidity is used in our language to refer to the quality of something liquid, a substance for example. Something will be liquid when the molecules that make it up have a lower cohesion than what they propose solid bodies and less with respect to gaseous ones, to cite two cases that contradict the liquidity.

And on the other hand, where the concept is widely used is in the field of finance To refer to those tangible or intangible assets of a person or a company that are plausible to be transformed quickly and simply into cash. Furthermore, many times the concept of liquidity is used to indicate that there is or is not available, at that very moment of demand, of hard cash in your pocket.
You find me without liquidity if I had not bought you the pair of boots.

Because then it turns out to be a very frequent situation at the request of the economy of a person physical or a company that has a lot of real estate, for example, but not so liquidity, cash in its

hands.
Of course the properties make the heritage of a person, however, they cannot always be seen at the moment to obtain cash and by case it is that the provision of the same is not considered in this sense as a condition of liquidity.

Meanwhile, at the request of a company, the disposition or not of liquidity will make or speak of its concrete capacity to be able to comply with the payment obligations that it has established in the short term. Companies usually have various assets that can be converted into concrete money, machines, tools, among others.

There is a variable known as the liquidity ratio, which is precisely concerned with measuring the ability or not of a company to meet its upcoming payment obligations. Then, this reason allows to know if a company will be able to respond with solvency in an extraordinary situation.

For example, the concept is also frequently used to express the solvency or not that someone presents.

Issues in Liquidity