Floating Assets, also known as Current Assets, are the assets in a company's possession that is expected to be converted into cash within a year.
The Liquidity Index measures a company's liquidity by calculating the number of days it would take for current assets to be converted into cash, providing insights into financial stability and operational efficiency.
Liquidity premium refers to the additional return that investors demand for holding assets that can be easily converted into cash with minimal loss of value. This concept indicates the relative advantage of holding liquid assets.
Realizable assets, often referred to as liquid assets, are assets that can be quickly converted into cash with minimal impact on their value.
