Liquid Assets

In the context of aviation, 'Liquid Assets' typically refers to the readily available resources that an airline or aviation company has at its disposal. These resources can be quickly converted into cash without affecting their market value. Liquid assets can include cash on hand, short-term investments, and accounts receivable. In the aviation industry, liquid assets are crucial for maintaining operational efficiency and ensuring the smooth running of daily operations. They are used to cover immediate expenses such as fuel costs, maintenance, salaries, and other operational costs. In times of crisis, such as a sudden drop in passenger numbers or unexpected expenses, having a significant amount of liquid assets can help an airline stay afloat while it adjusts its business strategy. Furthermore, liquid assets can also be used for strategic investments, such as expanding the fleet, upgrading facilities, or entering new markets. Therefore, the management of liquid assets is a critical aspect of financial management in the aviation industry.