Likvid

Likvid is a term used in Swedish finance to describe liquidity, the ease with which assets can be converted into cash to meet short-term obligations. In English, the closest equivalent is liquidity. The concept covers both personal and corporate finances and, in markets, the ease of trading an asset without large price moves.

In corporate finance, liquidity measures how well a firm can cover current liabilities with liquid assets. Common indicators include the current ratio (current assets divided by current liabilities), the quick ratio (cash, marketable securities and receivables divided by current liabilities), and the cash ratio (cash and cash equivalents divided by current liabilities). Cash flow from operations and the cash conversion cycle also reflect liquidity.

Liquidity risk is the chance that a firm cannot meet obligations when due. Causes include funding gaps, market disruptions, or a sharp drop in asset liquidity. Management addresses this with cash planning, diversification of funding sources, and standby credit lines.

Market liquidity refers to how readily an asset can be bought or sold with minimal price impact. Government bonds and cash are typically very liquid, while specialized assets may be illiquid due to sparse buyers or long settlement times.

Regulatory frameworks, especially for banks, impose liquidity standards such as the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) to ensure resilience during stress. Terminology: likvid is the adjective meaning liquid; likviditet is liquidity; likvida medel are liquid funds.