liquidity
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liquidity
In business, the ability of a company or person to remain solvent at all times, that is, to have enough liquid assets (cash, bank balances) to pay bills and debts on time.
Die Firma musste einen Kredit aufnehmen, um ihre Liquidität zu sichern.
The company had to take out a loan to secure its liquidity.
The ending '-ität' marks 'Liquidität' (liquidity) as an abstract noun that describes a quality. It is derived from the adjective 'liquide' (solvent), which means able to pay one's debts.
Ein Unternehmen muss immer liquide sein, um seine Rechnungen bezahlen zu können.
A company must always be liquid in order to be able to pay its bills.
'Liquidität' (liquidity) is a technical term from business and finance. In everyday life, the word is rarely used unless someone is specifically talking about a person’s or company’s finances.
Im Wirtschaftsunterricht haben wir über die Liquidität von Start-ups gesprochen.
In economics class, we talked about the liquidity of start-ups.
Common verbs used with 'Liquidität' (liquidity) are 'sichern' (to secure), 'erhalten' (to maintain), or 'verbessern' (to improve). It is also often described as 'hoch' (high), 'niedrig' (low), 'knapp' (tight), or 'ausreichend' (sufficient).
Durch den Verkauf von Aktien konnte das Unternehmen seine Liquidität erhöhen.
By selling shares, the company was able to increase its liquidity.
fortune / ability
'das Vermögen' and 'die Liquidität' both belong to the area of money, but they do not mean the same thing. 'das Vermögen' describes the total financial assets of a person or company, including things like real estate or other valuables. 'die Liquidität' describes whether there is enough immediately available money to pay bills. So someone can have a large fortune but still have little liquidity if the money is tied up in houses, for example. The words can be confused because both sound like financial strength. For total assets, you say 'Vermögen'; for short-term ability to pay, you say 'Liquidität'.
Die Firma verkauft ein Auto, weil sie ihre Liquidität verbessern muss.
The company is selling a car because it needs to improve its liquidity.
Sein Vermögen besteht vor allem aus zwei Wohnungen und einem kleinen Grundstück.
His fortune consists mainly of two apartments and a small plot of land.