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trancanneur
régie musicale
Mar 16, 2011 13:15
13 yrs ago
16 viewers *
French term

liquidités vs. cash

French to English Bus/Financial Finance (general)
Hi

I'm unsure about the distinction between "de liquidités" and "en cash" in this sentence about LVMH:

"...qui disposait de €3 milliards de liquidités fin 2010 et chaque année dégage la même somme en cash."

I can only think of cashflow in both cases.

Thanks for your help!
Proposed translations (English)
4 +1 liquid assets vs. cash
5 +1 Cash is the most liquid assets/liquidity relates to the ability to convert assets to cash

Discussion

joehlindsay Mar 17, 2011:
Yes, distinctions are usually made between cash and liquid assets. Liquid assets are assumed to be easily liquidated for cash, but there is always some small risk in holding assets that must be liquidated.

And again, when you use 'liquidités' in the plural, you change the meaning from the English term 'liquidity', which is not usually countable in English or French, to 'liquid assets', which are countable.

rkillings Mar 17, 2011:
Think flow vs. stock. The wording makes perfect sense to me. Cash is what you have coming in each year. You spend it or you hold it on the balance sheet as liquid assets (cash and cash equivalents).
philgoddard Mar 16, 2011:
Do you really need to bother about the precise distinction between the two? Can't you just say "had €3 billion in liquidity at the end of 2010 and is generating this same amount in cash each year?"
Sandra Petch (asker) Mar 16, 2011:
Merci Sylvain, mais dans ce contexte précis de LVMH, je ne pense pas qu'on parle de billets et de pièces.
Sylvain Lourme Mar 16, 2011:
Cash désigne a priori du liquide : des billets et des pièces, si tu préfères, tandis que liquidités désigne la somme que tu as en banque par exemple et que tu peux transformer facilement en liquide (en allant à un distributeur ou au guichet de la banque), par opposition à des sommes moins accessibles, (comptes bloqués, patrimoine immobilier, etc.) Bon, c'est comme ça que je l'entends.

Proposed translations

+1
4 hrs
Selected

liquid assets vs. cash

Liquidités (plural) can be translated as "liquid assets', 'cash assets', or 'cash and cash equivalents'. It is indeed ambiguous, but since it is contrasted with the anglicism 'cash', I think they clearly mean liquid assets.

These translations were confirmed in Ménard's Dictionnaire de la Comptabilité et de la Gestion financière and granddictionnaire.com.

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Note added at 4 hrs (2011-03-16 17:22:13 GMT)
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Also, cash flow in general is just 'trésorerie' or just 'tréso' in finance professional jargon, although the formal term is 'flux de trésorerie'. It also does mean 'cash', or 'cash and cash equivalents'.

All this is legitimately confusing.
Reference:

http://granddictionnaire.com/btml/fra/r_motclef/index800_1.asp

Peer comment(s):
agree rkillings
13 hrs
Thanks, Bob. Good point.
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4 KudoZ points awarded for this answer. Comment: "Thanks very much, and for the explanation. This was from a piece about Arnault, fortunately more biographical than financial!"
+1
29 mins

Cash is the most liquid assets/liquidity relates to the ability to convert assets to cash

Cash vs. Liquidity
There is a difference between cash and liquidity. Cash is generally the most liquid assets of the business. However, liquidity relates to the ability to convert assets to cash. An analysis of liquidity and cash can be done by using ratios. Ratios such as current assets to current liabilities, working capital to sales, receivables to sales, and inventory turnover (net sales to inventory) can help to assist in determining a business' cash picture. Other ratios such as profit margins and debt to equity are important for assessing the overall health of the company. However, while ratios are helpful, they may be hard to analyze. Ratios are only averages. It is hard to compare the averages of companies in different industries. In addition, firms want to do better than average. Seasonal factors are also difficult to determine. Accounting practices differ. In addition, the question arises as to whether a ratio is good or bad according to the industry and operating philosophy of management. Caution is required when using ratios. A certified public accountant (CPA) can assist you with this analysis.



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Note added at 30 λεπτά (2011-03-16 13:46:04 GMT)
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http://www.tncpa.org/publicinfo/SBarticles/cash_flow_in_out....
Note from asker:
Thanks. Reading the LVMH annual report, I think it's liquidity and cash from operations though I may just stick with cash!
Peer comment(s):
agree Cécile A.-C.
1 hr
thanks merci
neutral joehlindsay : 'liquidités' plural is not English 'liquidity' (non-countable)
3 hrs
liquidités is french. liquidity is english.Cash is generally the most liquid assets of the business. However, liquidity relates to the ability to convert assets to cash.
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