Home · RATIOXA GLOSSARY

Liquidity buffer

Immediately available reserve for unexpected costs after purchase.

01

Simple definition

Immediately available reserve for unexpected costs after purchase.

02

Why it matters

This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.

03

Worked example

Using all available equity may force a later repair to be financed again.