Adjective describing an individual, company, or entity possessing a substantial amount of valuable assets—such as real estate, investments, or cash holdings—relative to their liabilities or financial obligations. An asset-rich status often indicates financial stability and the potential for significant income generation, although it does not necessarily reflect cash flow or liquidity. asset-rich individuals or organizations may leverage their assets for loans or investment opportunities, impacting their financial strategies.
Asset-rich meaning with examples
- Despite being asset-rich, the company faced liquidity problems due to a mismatch between its revenue cycles and heavy equipment expenses. They were forced to sell some non-core assets to stabilize cash flow and ensure operational continuity.
- The asset-rich family owned multiple properties across the city, but they struggled to maintain their lifestyle as most of their wealth was tied up in real estate. They considered diversifying into stocks and bonds for better liquidity.
- Her asset-rich portfolio consisted of shares in several tech companies and real estate investments that appreciated significantly over the past decade. This financial strength provided her with the confidence to pursue entrepreneurial ventures.
- In the analysis of wealth distribution, the report highlighted that many asset-rich individuals often do not have significant liquid cash, which can hinder their ability to make immediate financial decisions or seize sudden investment opportunities.
- The nonprofit organization, although asset-rich due to generous donations of land and buildings, faced challenges in funding ongoing programs. They realized the importance of creating revenue-generating initiatives rather than solely relying on property value.