liquidity position

USAGE SUMMARY

"liquidity position" is a correct and usable phrase in written English.
It can be used to refer to a company's ability to pay its short-term liabilities. For example, "The company's liquidity position has improved since last quarter, providing more cash-flow flexibility."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Stuart Pearson, an analyst at Credit Suisse in London, wrote in a research note that while BMW's headline numbers missed expectations, there were positive surprises from its gross liquidity position, which refers to holdings of cash funds and securities.

The New York Times

Its liquidity position worsened in the quarter.

The Economist

"We have an incredibly strong liquidity position," Mr. Sherin said.

The New York Times

"We have an incredibly strong liquidity position," Sherin said.

The New York Times

It is quite possible that Bear's liquidity position was strong when Mr. Schwartz made his comments.

The New York Times

'Nevertheless, amid this market chatter, our liquidity position in the last 24 hours had significantly deteriorated.

The Guardian - Business

A firm with a strong cash or liquidity position is also likely to pay higher dividends.

Encyclopedia Britannica

First, corporations would find their tax liability cut al most at once, improving their liquidity position.

The New York Times

"Sharp's liquidity position is weakening, in Standard & Poor's view," the agency said in a statement Friday.

The New York Times - Tech

"This is based on OGX's virtually null cash flow generation and tight liquidity position".

The New York Times

"The after-tax proceeds from these transactions further strengthened our solid liquidity position," Mr. Sulzberger said.

The New York Times

Expert writing Tips

Best practice

When discussing a company's financial health, clearly define the period you're referencing when assessing the "liquidity position". State if you are talking about their current, past or projected standing.

Common error

Don't use "liquidity position" interchangeably with solvency. Liquidity refers to short-term ability to meet obligations, while solvency indicates long-term financial viability.

Linguistic Context

The phrase "liquidity position" functions as a noun phrase, typically serving as the subject or object of a sentence. It refers to the state of a company's ability to meet its short-term financial obligations, as suggested by Ludwig's examples.

Expression frequency: Very common

Frequent in

News & Media

52%

Formal & Business

28%

Encyclopedias

8%

Less common in

Science

6%

Academia

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "liquidity position" is a commonly used and grammatically sound term in business and finance. As Ludwig AI also confirms, it describes a company's ability to meet its short-term obligations. Predominantly found in news and formal business contexts, it serves to inform and assess financial stability. Maintain clarity by specifying the time frame under consideration and avoiding confusion with long-term solvency. Remember, while "cash reserves" or "available capital" can be used as alternatives, "liquidity position" provides a comprehensive view of a company's immediate financial health.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

liquid assets

Refers to assets that can be easily converted into cash.

cash reserves

Focuses specifically on the amount of cash a company has available.

access to capital

Emphasizes the ability to obtain funds when needed.

available capital

Emphasizes the capital readily accessible for use.

financial standing

Indicates overall financial health and stability.

financial health

Indicates overall financial well-being.

solvency status

Highlights the ability to meet long-term financial obligations.

current assets

Highlights assets expected to be converted to cash within one year.

cash flow situation

Refers to the movement of cash both into and out of a company.

working capital

Focuses on the difference between current assets and current liabilities.

FAQs

How is "liquidity position" assessed?

A company's "liquidity position" is typically assessed using financial ratios such as the current ratio, quick ratio, and cash ratio, which evaluate its ability to cover short-term liabilities with its liquid assets.

What factors can affect a company's "liquidity position"?

Factors affecting a company's "liquidity position" include changes in sales, accounts receivable collection periods, inventory turnover, and the timing of payments to suppliers.

Why is maintaining a healthy "liquidity position" important?

A healthy "liquidity position" enables a company to meet its short-term obligations, invest in growth opportunities, and weather unexpected financial challenges. A poor liquidity position can lead to financial distress and even bankruptcy.

What are some alternatives to "liquidity position"?

You can use alternatives like "cash reserves", "available capital", or "liquid assets depending" on the context.