Company liquidity is a measure of how quickly and easily an organization can turn its assets into cash. It’s critical for businesses to have enough cash on hand to cover their daily expenses and prepare for unexpected costs. Anything that contributes to the ability to access cash quickly – like a healthy balance sheet, strong credit rating, and low debt level – is said to improve a company’s liquidity. Ultimately, it ensures a business can survive in hard times and thrive in good ones.