Specifically, cash realization refers to turning into cash (including cash on hand and bank deposits, etc. ), and liquidity refers to the speed and time at which various assets of the company are sold, recovered and converted into cash. Therefore, for different assets, liquidity is high or low. Generally speaking, the liquidity of current assets is higher than that of non-current assets, while the liquidity of current assets such as short-term investment and accounts receivable is higher than that of physical current assets such as inventory.
Generally speaking, the stronger the company's ability to realize assets within a certain time and price, the higher the quality of assets.