👉 Financial fluidity refers to the ease with which a company can convert its assets into cash or vice versa, reflecting its ability to manage and respond to financial demands efficiently. It encompasses the speed and flexibility of a firm's operations in accessing funds, managing liquidity, and adapting to market changes. High financial fluidity allows a company to meet short-term obligations, seize investment opportunities, and navigate economic uncertainties without compromising its financial health. This concept is crucial for maintaining a company's solvency and competitiveness in dynamic market environments.
