Liquidatable refers to an asset, investment, or liability that can be easily converted into cash or cash equivalents. The term is often used in financial contexts to describe investments that are readily marketable or can be sold in order to generate cash quickly. liquidatable assets contrast with illiquid assets, which may require a longer time frame or additional costs to sell. Businesses and investors often assess the liquidatable nature of their assets when planning for liquidity needs.
Liquidatable meaning with examples
- When planning for retirement, it is essential to have enough liquidatable assets to cover expenses without reselling property or long-term investments. liquidatable funds allow retirees to maintain their quality of life without financial stress.
- The company's balance sheet showed a healthy proportion of liquidatable assets, which provided confidence to investors about its financial stability. This indicated that they could quickly access cash if needed.
- In times of financial crisis, individuals often rely on their liquidatable savings to meet urgent expenses. Having liquidatable funds can alleviate stress and provide a financial cushion during unexpected events.
- Real estate is typically considered less liquidatable than stocks or bonds, as it may take time to sell a property. Investors should balance their portfolios with both liquidatable and non-liquidatable assets.
- Venture capitalists prefer to invest in startups that have a clear path to liquidatable returns, ensuring they can convert their investment into cash within a reasonable timeframe, minimizing risk.