Total Available Liquidity

What is Total Available Liquidity?

Total available liquidity includes 100% of the cash and cash equivalents a business has on hand. It may also include a company’s borrowing capacity.

This metric can be calculated by completing the following formula:

Total available liquidity = cash and cash equivalents + accounts receivable + marketable securities

On its own, total available liquidity is not as meaningful as some other metrics. However, it can help a business gauge its standing as it prepares to make financial decisions.

Related terms

30-Day and 13-Week Operating Cash Burn

30-day and 13-week operating cash burn are also known as the “burn rate.” These are the rates at which a business consumes its cash reserves when it isn’t bringing in profit.

Account Reconciliation

Account reconciliation is the process of comparing two sets of records to ensure their accuracy and consistency.

Accounts Payable

Accounts payable (AP) refers to the amount of money that a business owes to its suppliers or creditors for goods or services purchased on credit.

Accounts Payable Days

Accounts Payable Days (AP Days), also referred to as Days Payable Outstanding (DPO), is a financial ratio that measures the average time a company takes to pay its suppliers or vendors for credit purchases.

Accounts Payable Turnover

Accounts payable turnover explains how many times a business pays its creditors in a set timespan. Companies can use this metric to measure their short-term liquidity.

Accounts Receivable Turnover

The accounts receivable turnover ratio (or debtor turnover ratio) allows businesses to evaluate their debt collection efficiency.