Knowledge Centre
Net Liquid Assets
A measurement of a company’s ability to finance itself in the sort term future. It is an assessment of near-term liquidity, calculated as liquid assets (cash, marketable securities and accounts receivable) less current liabilities. NLA usually demonstrates that a company is in good health, being capable of paying its suppliers, servicing short term debt, and investing without having to assume additional debt. (Having an excessively large NLA position can also be demonstrative of too much idle cash which could be put to better use).