Business liquidity refers to the ability of a company to generate cash, meet its short-term debt obligations, and take advantage of investment opportunities quickly. It’s essential for companies to maintain sufficient liquidity in order to ensure their continued success and survival. Business liquidity can be measured by current ratio, quick ratio, and cash flow coverage ratio. A company with high business liquidity is one that can easily convert assets into cash and service debts when they come due without sacrificing profitability or derailing operations.