Likvideihin

Likvideihin is a Finnish finance term referring to the portion of an individual's or organization's assets that can be quickly converted into cash without substantial loss of value. It denotes liquid assets, as opposed to illiquid investments such as real estate, private equity, or long-term bonds. The term appears in everyday financial language in phrases like likvideihin varoihin, meaning "to liquid assets," and is central to liquidity management in corporate finance and personal budgeting.

Typical components include cash on hand, bank deposits, and short-term, high-quality securities such as government bills or money market funds. These instruments are chosen for their low risk and short maturities, which helps ensure funds are available to meet obligations as they arise. By contrast, assets that take longer to sell or may incur significant price changes are not regarded as likvideihin.

The role of likvideihin is to provide a buffer against cash shortfalls, enable smooth operations, and reduce liquidity risk. A higher share of likvideihin generally lowers financial risk but may reduce expected returns compared with investments in longer-term or riskier assets. In budgeting and reporting, organizations forecast cash flows and monitor the size of likvideihin to maintain solvency and flexibility.

See also: liquidity, cash ratio, liquidity risk.