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.
creditworthiness
Liquidität and Bonität both describe financial ability to pay, but they do not mean the same thing. Liquidität shows whether enough money is currently available for bills that are due, whereas Bonität assesses whether debts are likely to be repaid reliably. Use Liquidität for available funds and Bonität for creditworthiness.
Wegen mehrerer verspäteter Zahlungen prüft die Firma heute ihre Liquidität.
Because of several late payments, the company is checking its liquidity today.
Die Bank bewilligte den Kredit wegen der guten Bonität des Unternehmens.
The bank approved the loan because of the company’s good creditworthiness.
