Likuiditas
Definition & Context
Noun
A word that functions as the name of a specific object or set of objects, such as living creatures, places, actions, qualities, states of existence, or ideas.
The ability of an “economic entity” or company to meet its short-term financial obligations on time by utilizing its current assets.
Synonyms & Variants
arus kas
Primary indicator that determines liquidity.
solvabilitas
Often paired with liquidity but covers a different time horizon.
Usage Notes or Etymology
The word likuiditas is adopted from the English “liquidity” which stems from the Latin liquidus meaning fluid or flowing. In economic contexts, this term refers to the ease with which an asset can be converted into cash without significantly reducing its market value. Usage of this term is common in financial statements, banking analysis, and macroeconomic discourse to measure the financial health of an entity.
Real-world Usage
Perusahaan harus menjaga likuiditas yang sehat guna menutupi seluruh kewajiban jangka pendeknya tepat waktu.
English Translation
Representative of real-world usage and contextual accuracy.
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