> I would define it as "current liabilities in excess of current assets" That's solvency, not liquidity. If your liabilities exceed your assets you have gone b

> I would define it as "current liabilities in excess of current assets" That's solvency, not liquidity. If your liabilities exceed your assets you have gone bust. Liquidity is having the cash to cover your outflows. You may have enough assets but if these assets aren't liquid, you have a liquidity issue.