Understanding the Meaning of Liquidity
Liquidity refers to the ease with which assets can be converted into cash to meet immediate and short-term financial obligations. Think of it like a tap connected to your financial system: when you turn the tap, how much water (cash) flows out, and how quickly does it arrive? Businesses that enjoy high liquidity have assets that can flow freely into operational use without long waiting periods or complex transactions.
From paying employees and vendors to dealing with sudden disruptions like equipment breakdowns or lost sales, businesses often need to mobilize funds fast. That is where liquidity becomes an essential component of operational success.
Why Liquidity Matters to a Business
Liquidity is not just a matter of convenience; it is a determining factor for financial resilience. A company may be rich in assets but still unable to pay bills if those assets are tied up in investments or physical goods that take time to sell. If a business cannot access funds to meet obligations in time, it risks penalties, damaged creditworthiness, lost supplier relationships, and even insolvency in extreme cases.
Having a good level of liquidity provides a financial cushion. It allows the company to make decisions proactively rather than reactively. For example, a well-capitalized business can invest in a new opportunity, negotiate better payment terms with confidence, or navigate unexpected drops in revenue without panic.
Defining Liquid Assets
Liquid assets are financial resources that can be readily converted into cash without significantly losing value. These are assets that a business can quickly draw upon to meet its financial responsibilities or seize time-sensitive opportunities.
The more liquid an asset is, the easier and faster it can be used for spending or investing. Several characteristics determine whether an asset is considered liquid:
- The speed with which it can be sold
- The ability to maintain its market value
- The ease of transferring ownership
- The availability of a buyer or secondary market
Not all assets that are valuable qualify as liquid. Understanding the difference is key to managing short-term financial needs versus long-term investments.
Key Types of Liquid Assets
Liquid assets fall into two primary categories: cash-based and non-cash assets that are still easily accessible. Each type has different levels of immediacy and practical use in managing operational expenses.
Cash and Bank Deposits
Cash, whether physical or digital, is the most liquid asset a business can hold. It includes funds kept in the company’s premises and those held in business bank accounts. These resources can be deployed without delay and without the need to convert or sell anything. Bank deposits, especially those in checking or savings accounts, provide immediate access to funds and are ideal for managing recurring operational expenses such as payroll, rent, and utilities.
Accounts Receivable
Accounts receivable represent money owed to the business by its customers. Although technically not yet in hand, these are amounts expected to be received within a short time frame. Their liquidity depends on how reliable and timely your clients are in settling their bills. Companies with strong credit policies and efficient invoicing practices tend to treat accounts receivable as a near-liquid asset.
Marketable Securities and Cash Equivalents
Marketable securities are investments that are traded on public exchanges and can be sold with minimal delay. These include stocks, government bonds, mutual funds, and exchange-traded funds. When these instruments are highly liquid, they are grouped under the broader category of cash equivalents.
Cash equivalents refer to low-risk, short-term investments that can be easily converted to cash, often within a few days. These include treasury bills, money market funds, and short-term certificates of deposit. They offer a combination of quick access and modest returns, making them ideal for holding idle cash while keeping it productive.
Distinguishing Between Liquid and Non-Liquid Assets
Understanding the distinction between liquid and non-liquid assets is crucial for financial planning. While both types add to your overall net worth, only liquid assets are usable in the short term.
Real Estate and Property
Property is generally considered an illiquid asset due to the time and effort required to sell it. Real estate sales involve listing, valuation, buyer searches, negotiation, and legal processing. This can take weeks or even months depending on the market, making real estate unsuitable for short-term liquidity needs despite its high value.
Equipment and Vehicles
Business assets like manufacturing equipment, commercial vehicles, or office technology typically lose value over time due to depreciation. Selling these assets quickly may require discounts or incentives. Moreover, the process involves logistics, legal documentation, and finding the right buyer, further limiting their liquidity.
Collectibles, Art, and Intellectual Property
These assets often hold substantial value but lack quick sale options. Items such as artwork, rare collectibles, and proprietary rights usually require niche markets and specialized buyers. Their liquidity is unpredictable and highly dependent on market interest and valuation, making them difficult to rely on in a financial emergency.
Equity in Private Companies
Shares in private companies are illiquid by nature, especially if ownership restrictions or partnership agreements are in place. Even if there is interest in buying such shares, selling may require legal approvals and detailed negotiations, which limits their usefulness as liquid resources.
Liquidity and Business Risk Management
Liquidity acts as a buffer against uncertainty. Economic cycles, seasonal fluctuations, late payments from customers, and emergencies can all impact a business’s cash flow. Liquid assets allow companies to manage these disruptions without seeking external financing or sacrificing strategic goals.
Risk management strategies often include setting aside a liquidity reserve, sometimes called an emergency fund, to cover several months of essential expenses. This fund is typically composed of highly liquid assets that can be accessed quickly and safely.
Role of Liquidity in Business Planning
Strategic planning must account for both long-term investments and short-term obligations. Overcommitting funds to long-term, illiquid assets can leave a business exposed when immediate financial needs arise. On the other hand, holding excessive liquid assets without putting them to work may limit growth.
Financial planners and CFOs strive to find a balance where the business can meet its commitments comfortably while still using surplus capital for growth or expansion. This balance involves close monitoring of working capital, payment cycles, and operational cash flow.
Signs of Good Liquidity Management
A business with strong liquidity practices often exhibits several key traits:
- Smooth payroll execution and bill payments
- Low reliance on short-term credit or overdrafts
- Strong vendor and supplier relationships
- Ability to negotiate discounts for upfront payments
- Confident navigation through low revenue periods
Such organizations are viewed favorably by lenders and investors alike. They are seen as stable, capable of honoring debts, and well-positioned for future development.
Limitations of Liquid Assets
While essential, liquid assets are not a cure-all. Holding too much cash or overly liquid investments can lead to missed opportunities, as these assets typically yield lower returns than long-term investments. Inflation also erodes the purchasing power of idle funds.
Therefore, it is important to evaluate the opportunity cost of maintaining excessive liquidity. Businesses must determine how much is sufficient to protect operations without stalling momentum or diminishing returns.
Industry-Specific Liquidity Considerations
Liquidity needs vary by industry. For example, retail businesses typically require more liquidity due to fast-moving inventory and frequent customer transactions. Construction companies, by contrast, may deal with delayed payments or progress-based billing, requiring more rigorous liquidity planning.
Similarly, technology startups might operate with lower liquidity in early stages while relying on investor funding, whereas manufacturing firms need cash to cover labor, supplies, and machinery costs consistently. Each sector must tailor its liquidity strategy to align with its operating cycle and risk profile.
Establishing Liquidity Policies
Formal liquidity policies help businesses maintain discipline and direction in managing their financial position. These policies often include:
- Minimum liquidity thresholds
- Guidelines for investment of surplus cash
- Payment terms and collection strategies
- Rules for emergency fund usage
- Periodic liquidity reviews and stress testing
By institutionalizing these policies, companies can make liquidity a consistent part of their financial culture rather than an afterthought.
Measuring Financial Strength with Liquidity Ratios
Understanding which assets can be quickly converted to cash is only part of the liquidity picture. For business owners, finance teams, and investors, evaluating liquidity in real terms requires objective data. This is where liquidity ratios come into play. These financial metrics provide a standardized way to measure how effectively a business can meet its short-term obligations using its liquid assets.
Liquidity ratios serve as a key indicator of financial health and operational readiness. They reveal whether a company is running smoothly, living paycheck to paycheck, or possibly heading toward a cash crunch. We explore the most commonly used liquidity ratios, how they are calculated, and what they reveal about a company’s day-to-day financial flexibility.
What Are Liquidity Ratios?
Liquidity ratios are financial tools that compare a company’s liquid assets to its short-term liabilities. These ratios help assess whether a business can cover its financial obligations due within the next 12 months. A strong liquidity ratio demonstrates the ability to pay off debts using resources that are either in cash or can quickly be converted into cash.
Unlike profitability ratios, which focus on earnings, liquidity ratios measure solvency in the short term. They are especially important for small and medium-sized enterprises, startups, or any company with variable income streams or high operating costs.
Why Liquidity Ratios Matter in Financial Analysis
Liquidity ratios are widely used by financial analysts, lenders, auditors, and business owners to assess operational risk. Companies that maintain healthy liquidity ratios tend to have lower credit risk and better reputations with vendors, employees, and investors.
From a lender’s perspective, liquidity ratios offer reassurance that the borrower can meet its debt obligations without default. For managers and founders, these ratios provide insight into how cash is being managed and whether current asset levels are sufficient to meet near-term obligations.
High liquidity ratios offer operational flexibility, while low ratios may signal trouble ahead. However, context is important, and these ratios should always be analyzed alongside industry benchmarks and business models.
Most Common Liquidity Ratios
There are several liquidity ratios used in financial reporting, but the two most common are the current ratio and the quick ratio. These metrics provide clear, reliable insights into short-term financial strength.
Current Ratio
The current ratio evaluates a business’s ability to pay off all of its current liabilities using its current assets. It’s the broadest of the liquidity ratios and includes all current assets, whether highly liquid or not.
The formula for the current ratio is:
Current Assets / Current Liabilities = Current Ratio
Current assets include:
- Cash
- Bank balances
- Accounts receivable
- Inventory
- Prepaid expenses
- Marketable securities
Current liabilities include:
- Accounts payable
- Short-term loans
- Accrued expenses
- Tax liabilities due within one year
A current ratio of 1 means that a company has exactly enough current assets to cover its current liabilities. A ratio above 1 is generally considered favorable because it indicates that the business has more resources than debts due in the near term. A ratio below 1 may suggest liquidity challenges and an inability to meet short-term obligations without external help.
While the current ratio is helpful, it may paint an overly optimistic picture in cases where inventory or prepaid expenses make up a large portion of current assets. These items are not always quickly convertible to cash.
Quick Ratio (Acid-Test Ratio)
The quick ratio takes a more conservative approach to measuring liquidity by excluding less liquid assets such as inventory and prepaid expenses. It focuses only on the most liquid current assets, providing a clearer view of immediate solvency.
The formula for the quick ratio is:
(Current Assets – Inventory – Prepaid Expenses) / Current Liabilities = Quick Ratio
This ratio narrows the focus to:
- Cash
- Cash equivalents
- Marketable securities
- Accounts receivable
A quick ratio of 1 or more suggests that the company can meet its short-term liabilities without relying on the sale of inventory or collection of prepayments. This is especially relevant for businesses with high inventory turnover cycles or companies operating in industries where inventory may take time to convert into cash.
The quick ratio is often preferred by lenders and investors who want a stricter measure of financial readiness. It provides assurance that a company can handle emergency cash needs without selling physical goods or delaying vendor payments.
Other Useful Liquidity Metrics
Beyond the current and quick ratios, businesses can also examine other liquidity indicators to get a fuller picture of financial strength. These include:
Cash Ratio
The cash ratio measures the company’s ability to pay off current liabilities using only its cash and cash equivalents. It is the most conservative liquidity ratio because it excludes all other current assets.
Cash and Cash Equivalents / Current Liabilities = Cash Ratio
A cash ratio above 1 is rare and may indicate that the business is holding too much cash instead of investing in growth. A ratio below 1 doesn’t necessarily signal trouble, but it does suggest the company may need to convert other assets if immediate cash is required.
Operating Cash Flow Ratio
This ratio compares operating cash flow to current liabilities and shows how much of a company’s short-term debt can be covered by cash generated from core business activities.
Operating Cash Flow / Current Liabilities = Operating Cash Flow Ratio
This measure accounts for the actual flow of money in and out of the business, offering a real-world view of liquidity based on performance rather than asset values.
How to Interpret Liquidity Ratios
Liquidity ratios should not be viewed in isolation. They must be interpreted in the context of industry standards, business cycles, and the company’s financial model.
For instance, a company with a current ratio of 2 may seem healthy, but if that ratio has been steadily declining over quarters, it may indicate growing pressure on liquidity. Similarly, a quick ratio of 0.9 may not be alarming for a business with fast inventory turnover and a strong cash conversion cycle.
Here are a few interpretative guidelines:
- Ratios above 1 generally indicate good liquidity
- Ratios below 1 may signal risk or overreliance on future income
- Extremely high ratios may point to inefficient use of capital
- Consistency over time is key—sharp drops or spikes require investigation
Each liquidity ratio should be compared not only to internal historical data but also to competitors and sector averages.
Liquidity Ratios in Different Industries
Liquidity requirements vary significantly across sectors. For example:
- Retail businesses often maintain high liquidity due to constant supplier and staffing costs
- Manufacturing firms may rely on inventory-heavy models, skewing current ratios
- Technology companies may have fewer physical assets and rely more on receivables
- Construction firms often work on long contracts with delayed payments, requiring strict liquidity controls
Understanding the norms in your sector will help determine what an ideal liquidity ratio looks like for your business.
Using Liquidity Ratios for Decision-Making
Liquidity ratios are not just numbers for the accounting team—they are practical tools for real-time business decisions. Some key use cases include:
Forecasting Cash Flow
Regular monitoring of liquidity ratios can help identify patterns in working capital and anticipate future cash requirements. This supports better budget planning, reducing the risk of unexpected shortfalls.
Guiding Investment Strategies
If liquidity ratios are consistently high, it may suggest that cash reserves are underutilized. Businesses can use this information to justify reinvesting in growth, launching new products, or acquiring complementary businesses.
Supporting Loan Applications
Strong liquidity metrics provide reassurance to banks and investors. When applying for loans, showcasing healthy liquidity ratios can improve the chances of approval and may help secure better interest rates and repayment terms.
Managing Risk
Liquidity ratios help business leaders identify and mitigate risks. A declining quick ratio might trigger an internal review of credit policies, billing cycles, or inventory management practices.
Assessing Business Resilience
High liquidity indicates that a company is prepared to navigate downturns, slow sales, or unexpected cost increases without external financing. This readiness is crucial for maintaining continuity and stakeholder confidence.
Practical Steps to Improve Liquidity Ratios
Improving liquidity starts with small but consistent efforts in operational efficiency. Some strategies include:
- Accelerating invoice collection through tighter credit terms
- Reducing inventory to avoid holding excess stock
- Delaying or negotiating supplier payments (without harming relationships)
- Reducing unnecessary expenses
- Increasing short-term revenue through promotions or upsells
Even if your liquidity ratios are within a healthy range, optimizing these processes contributes to long-term sustainability.
Monitoring Liquidity Over Time
A one-time snapshot of liquidity is helpful, but trends are more revealing. Monthly or quarterly reviews of liquidity ratios help management teams respond quickly to financial changes. Consistent tracking also provides a basis for goal-setting and performance evaluation.
Liquidity dashboards, financial reporting tools, and real-time accounting systems can automate much of this monitoring. By incorporating liquidity tracking into regular financial reviews, companies can remain proactive in managing their cash position.
Managing and Optimizing Liquid Assets for Long-Term Business Success
Building a sustainable business involves more than simply generating profits. Long-term growth requires smart cash management and proactive planning. A key component of this is managing liquid assets in a way that ensures ongoing access to funds while minimizing risk and maximizing utility.
After identifying what constitutes liquidity and how to measure it through financial ratios, the next step is to learn how to handle liquid assets in practice. This means deciding where to store them, how much to retain, and how to integrate liquidity into strategic financial planning. When managed well, liquid assets offer a powerful tool for navigating market fluctuations, supporting daily operations, and preparing for the future.
Where to Store Liquid Assets
Liquid assets must be available when needed, which means they must be stored in a way that balances access, security, and returns. Different options offer varying levels of convenience and interest, so the decision should be guided by the nature of your business and its cash flow needs.
High-Interest Business Savings Accounts
One of the most accessible places to hold liquid assets is in a business savings account that offers competitive interest rates. These accounts provide quick access to cash, typically within one business day, while allowing idle funds to earn interest. They are often used for holding emergency reserves or managing seasonal revenue fluctuations.
Savings accounts are protected, regulated, and low-risk. While the returns are modest, they provide certainty and accessibility, making them ideal for storing working capital or short-term cash reserves.
Cash Management Accounts
A cash management account is designed to hold short-term funds while offering features like higher yields, integrated payment tools, and easy transfers. These accounts often combine the benefits of savings and checking accounts while allowing businesses to automate disbursements, reconcile payments, and manage liquidity in real time.
Because these accounts may invest in short-term instruments such as treasury bills, they tend to offer better returns than traditional savings accounts. At the same time, they retain liquidity by ensuring funds are accessible on short notice.
Term Deposits with Early Withdrawal Options
Fixed-term deposits, or time deposits, allow businesses to lock in a fixed interest rate for a set period. While these instruments are not traditionally classified as liquid due to early withdrawal penalties, some offer partial withdrawal options or liquidity add-ons.
Businesses with stable surplus cash can use term deposits for funds not needed in the immediate future. These deposits can be laddered across different terms to maintain liquidity at scheduled intervals while improving returns.
Money Market Funds
Money market funds are investment vehicles that invest in highly liquid, short-term securities. They are designed to offer higher returns than savings accounts without taking on significant risk. Businesses can typically withdraw funds within a few business days, making them a viable option for storing excess liquidity.
These funds are used by companies that want their money to work a little harder without losing access. They offer a middle ground between safety and yield, particularly for businesses with consistent cash flow and forecasting.
How Much Liquidity Should a Business Maintain?
There is no universal rule for how much liquidity a business should hold. The right level of liquid assets depends on various factors, including the industry, company size, market volatility, and the predictability of cash flow.
The Three-Month Rule
Many businesses aim to hold enough liquid assets to cover at least three months of operating expenses. This standard offers a buffer against revenue shortfalls, payment delays, or unexpected costs. For companies with high fixed expenses or seasonal revenues, extending this buffer to six months may be prudent.
Maintaining a liquidity reserve equal to multiple months of expenses provides peace of mind and ensures the company can continue functioning even in difficult periods.
Sector-Specific Needs
Each industry has its own liquidity profile. Retail businesses often require higher liquidity due to frequent inventory purchases and customer returns. Manufacturing firms may tie up more capital in raw materials and production, while service-based companies may need to maintain liquid reserves for payroll and vendor contracts.
Understanding sector-specific dynamics helps businesses tailor their liquidity strategy appropriately. Benchmarking against industry peers can offer useful guidance in determining liquidity targets.
Business Cycle Considerations
Liquidity needs also vary based on where a company is in its business cycle. A startup in early growth stages may require higher liquidity to weather unpredictable sales and expenses. Mature companies with stable revenue may operate with tighter liquidity margins, relying on predictable inflows.
Businesses undergoing expansion, mergers, or restructuring may require additional liquidity to manage integration costs or temporary disruptions.
Integrating Liquidity into Strategic Financial Planning
Maintaining liquidity is not just a defensive move—it should be part of a broader financial strategy. When integrated with budgeting, forecasting, and investment planning, liquidity management can drive smarter decision-making and create long-term resilience.
Cash Flow Forecasting
One of the most important tools in liquidity planning is a rolling cash flow forecast. This projection estimates expected inflows and outflows over a defined period, usually covering 12 weeks, 6 months, or 12 months. By forecasting cash positions, businesses can spot shortfalls in advance and take corrective action.
A well-maintained cash flow forecast provides a roadmap for when to transfer funds, reduce expenses, or seek additional financing. It enables proactive liquidity management instead of reacting to crises.
Working Capital Optimization
Working capital is the capital used to fund daily operations. It consists of current assets minus current liabilities. Optimizing working capital is essential for maintaining liquidity and involves improving receivables collection, managing inventory levels, and extending supplier payment terms without harming relationships.
When working capital is well-managed, liquidity improves naturally. Businesses should monitor turnover ratios, payment cycles, and inventory metrics to find opportunities for efficiency.
Creating a Liquidity Policy
Formalizing liquidity management in the form of a written policy can ensure consistency and alignment across departments. A liquidity policy should include:
- Minimum liquidity thresholds to maintain
- Criteria for using cash reserves
- Allocation of idle funds to interest-bearing accounts
- Roles and responsibilities for monitoring liquidity
- Escalation plans for addressing shortfalls
By codifying these principles, businesses build discipline into their financial operations and reduce the risk of sudden cash shortages.
Managing Liquidity in a Global Context
Businesses that operate across borders face additional complexity in managing liquidity. Currency fluctuations, differing payment terms, and banking regulations can all affect how quickly funds can be accessed.
Multi-Currency Planning
International businesses often earn revenue and incur expenses in different currencies. Holding liquid assets in the same currencies as expenses can reduce reliance on conversions and avoid unfavorable exchange rates.
Multi-currency planning ensures that liquid reserves are aligned with global operations. Businesses should maintain currency-specific liquidity forecasts and consider local cash needs when allocating reserves.
Managing Payment Delays and Regional Risk
In some regions, collecting payments can take longer due to local regulations, banking infrastructure, or cultural norms. Businesses should factor in these realities when building liquidity plans and may need to hold additional reserves in those markets to compensate for delays.
Establishing relationships with regional financial institutions, negotiating payment terms upfront, and using escrow or trade credit insurance can help mitigate risks associated with payment delays.
Strategic Use of Surplus Liquidity
When a business has more liquid assets than required for safety and operations, those funds can be used strategically to enhance growth. However, doing so requires careful evaluation to avoid overexposure.
Funding New Initiatives
Surplus liquidity can be allocated to research and development, marketing campaigns, or geographic expansion. Unlike borrowing, using internal funds avoids interest payments and preserves credit capacity for future needs.
Businesses should ensure that investments made from surplus liquidity still align with return expectations and risk appetite.
Paying Down Debt
Another use of surplus liquidity is to reduce existing liabilities. Prepaying loans or credit lines can lower interest costs and improve credit scores, which may lead to better terms in future borrowing.
Debt repayment from excess liquidity can strengthen balance sheets and improve financial ratios, especially when interest rates are high.
Establishing Dividend Policies or Buybacks
Established businesses with strong liquidity positions may choose to return capital to shareholders through dividends or share buybacks. These moves can improve investor confidence and reflect a stable financial position.
However, such strategies must be balanced against future cash needs and should not compromise the company’s liquidity buffer.
Signs That Liquidity May Be Mismanaged
Despite the best efforts, liquidity can fall out of balance due to internal or external factors. Recognizing early warning signs can help companies respond before issues become critical.
Recurring Cash Shortfalls
If the business frequently struggles to meet payroll or pay vendors, this may point to inadequate liquidity planning. It could indicate that too much capital is tied up in receivables or inventory.
Reliance on Emergency Credit
Repeated use of short-term credit or overdraft facilities suggests that liquidity levels are too low. While these tools can be useful occasionally, routine dependence on them increases costs and reflects weak cash flow management.
High Idle Cash Balances with No Strategy
Holding excessive liquid assets without a plan for deployment may indicate missed opportunities. Funds that sit uninvested lose value over time due to inflation and opportunity cost.
Declining Liquidity Ratios
If metrics like the current ratio or quick ratio are steadily decreasing, this may signal weakening liquidity. Businesses should investigate whether expenses are rising, collections are slowing, or operating margins are narrowing.
Building a Liquidity-Focused Culture
Financial discipline begins with leadership but must extend across the organization. Teams responsible for operations, sales, procurement, and finance should all be aware of how their actions affect liquidity.
Training staff on the importance of invoice accuracy, timely approvals, supplier negotiations, and forecasting helps create a culture where liquidity is protected and preserved.
Technology also plays a role in fostering liquidity awareness. Real-time dashboards, automated payment tracking, and integrated accounting systems improve transparency and accountability.
Conclusion
In the fast-paced and often unpredictable world of business, liquidity is one of the most critical indicators of financial health. Across this series, we’ve explored what liquidity truly means, the different types of liquid and non-liquid assets, how to measure liquidity using financial ratios, and how to manage and optimize liquid assets effectively.
Liquid assets—such as cash, bank deposits, receivables, and marketable securities—provide businesses with the agility to act quickly. Whether responding to unexpected expenses, capitalizing on a sudden opportunity, or simply keeping daily operations running smoothly, these assets offer the flexibility and resilience that long-term success demands.
Liquidity ratios like the current ratio and quick ratio offer powerful tools for evaluating short-term solvency. By regularly tracking these indicators, businesses can identify potential financial pressure points early and take proactive steps to strengthen their balance sheets. These ratios also support strategic decision-making, improve creditworthiness, and instill confidence in investors and lenders.
But understanding liquidity is only half the equation—effectively managing it is what truly sets high-performing businesses apart. Knowing where to store liquid assets, how much to retain, and when to deploy surplus funds allows businesses to balance risk and reward. A well-managed liquidity strategy helps reduce financial stress, minimize borrowing costs, and seize opportunities when they arise.
Ultimately, liquidity is not just about having cash on hand; it’s about enabling choice, reducing vulnerability, and creating a foundation for smart growth. By treating liquidity as a core part of financial strategy—rather than an afterthought—businesses can build the confidence and capability to navigate any financial climate. Whether you’re running a startup, scaling a growing business, or leading an established enterprise, prioritizing liquidity today ensures stability and strength tomorrow.